Can I get a business car leasing agreement with Creditplus?

Approved by the Car Finance Advisory Board

Leasing a car for business purposes is becoming increasingly common in the UK. In this section, we answer the most common questions relating to business car leasing.

Business car leasing has been found to be a logical approach and a cost-effective solution for many businesses across the UK, whereby new or nearly new used cars are leased by a company for business use.

If you would like to discuss your options with a customer advisor, simply complete our online application form.

A particularly attractive characteristic of car leasing is the fact that there are no concerns regarding the depreciation and final residual value of the vehicle at the end of the agreement term. The leasing payments cover the depreciation for the leasing company, and depending on the leasing option chosen, the vehicle can be bought or returned to the leasing provider.

The flexibility offered to return the fleet of cars in return for upgrading to newer models is common practice with business car leasing.

The monthly lease payments are normally fixed for the length of the contract and are made clear prior to the signing of the agreement. The agreement will also detail an agreed annual mileage limit, and other charges that can be incurred with regards to exceptional wear and tear or damage that is not covered by the vehicle’s depreciation.

What's the best car leasing option for my business?

Finding the best business car leasing agreement depends on what you require. If you intend to claim back VAT, the best option will be Contract Hire. However, if this isn't a primary consideration, you may find that either Lease Purchase or Contract Purchase are good options, as these allow you to invest in an asset.

Can I reclaim the VAT on my business car lease?

Provided that your business is VAT registered, under current laws you'll be able to claim back up to 50% of the VAT charged on Contract Hire agreements. The true net payment made after claiming back the allowable VAT is called the Effective Rental.

Can you take out a business leasing agreement for a taxi?

It's highly unlikely that any provider will offer a leasing contract for a taxi or chauffeur driven car due to the large number of miles that this line of business is likely to put on the vehicle. Generally, vehicles for use as taxis or chauffeur driven cars will only be eligible for Hire Purchase contracts. To find out more about the commercial vehicles that we finance, please visit our dedicated help section.

Can you lease vans?

Yes, you can lease vans under any kind of vehicle leasing agreement - Personal Contract Purchase, Lease Purchase or Contract Hire. If you want to claim back the VAT, you'll need to take out a Contract Hire agreement. To find out more about the commercial vehicles that we finance, please visit our dedicated help section.

I have a company car allowance - what are my options?

In most situations where you'e issued a company car allowance, you're free to choose your own car and type of car finance agreement. To find out more about using your company car allowance to lease a car, please visit our personal car leasing help section.

Can you negotiate a business lease agreement for a fleet of vehicles?

Often, if you're leasing a fleet of vehicles there are points on which the lender will be willing to negotiate. One of the key benefits of leasing a fleet of vehicles is mileage pooling, which allows you to take a total mileage figure of your vehicles, rather than measuring each individually. This can be beneficial if some vehicles in your fleet do considerably more mileage than others, but is only offered by specific lenders under specific circumstances.

As each business car leasing case is considered individually, you'll need to speak to one of our Customer Advisors who'll help you get the best car leasing deal for your business.

What is Sale & Leaseback?

Sale & Leaseback is a special business car leasing arrangement between a company with a fleet of commercial vehicles and a leasing company, in order to release capital from the fleet. In a Sale & Leaseback agreement, the business customer sells their vehicle fleet to a leasing company for an agreed price, who in turn leases the vehicles back to the business customer. This allows the business customer to release capital that would otherwise be trapped in the vehicle fleet, along with getting all the benefits of leasing a vehicle fleet as opposed to owning one. To find out if you're eligible for a Sale & Leaseback arrangement with Creditplus, please contact one of our Customer Advisors on 0800 1777 290 today.

If you haven’t found the answer to your question about business car leasing, please use our LiveChat function to the right hand side of this webpage to speak to a Customer Advisor who'll be able to help you further.

Published: 16/05/2016
Last Updated:19/06/2017
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