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.
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.
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.
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.
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.
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.
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.
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.
If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.