Is Business Leasing Right For My Business - Select Car Leasing

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Is Business Car Or Van Leasing Right For My Business?

Business car and van leasing offers many distinct benefits, however, there are some situations where it may not be right for your business just now. To help you decide, we’ve put together a list of factors to help point you in the right direction.

Business Vehicle Leasing May Be Right For Your Business...

  • If you want to keep vehicle expenses predictable every month
  • If you have other plans for business capital and don’t want to overspend on vehicles
  • If you want or need to update your business vehicle every 2-3 years
  • If you do moderate to high mileage (as most leases are priced at this band of usage)
  • If you’re looking for ways to incentivise prospective employees and reward current ones
  • If you want to project a successful image for your business
  • If you want to avoid the risks and concerns associated with owning and selling vehicles
  • If you want to avoid owning depreciating assets
  • If available capital is limiting the calibre of car or van your business can drive
  • If you want to meet your employer vehicle safety obligations
  • If you’re looking for ways to reclaim VAT and monthly vehicle payments

Business Vehicle Leasing May Not Be Right For Your Business If...

  • If you’re set on leasing a car in a high CO2 emissions band… in this situation the company car tax rate (i.e. Class 1A National Insurance Contributions) may outweigh other business benefits. Read more about CO2 emissions banding and company car and van tax.
  • If you/your employee’s business mileage is low (e.g. below 5,000 miles p.a.)… as most lease contracts are priced at moderate to high mileage and driving less may not provide good value
  • If your business mileage is highly variable or unpredictable from year to year… as a lease contract requires accurate mileage estimation. If you need a fleet of vehicles however, mileage can potentially be pooled so as to avoid this issue
  • If you don’t own a business, are not a limited company, a partnership or a sole trader… as you may not be eligible for a business lease to find out more, read our guides to eligibility and business car leasing.
  • If mileage driven is likely to dramatically change in the next 2-3 years… as you’ll need fairly consistent mileage for each year of the contract (albeit some funders offer the option to re-negotiate mileage)
  • If you can’t be sure your business will need a vehicle for the full term of a lease… e.g. 2-3 years, as whilst early termination of the lease is possible, charges may apply
  • If you believe you or your employees won’t care for the vehicle… as it would need to be maintained in-line with Fair Wear and Tear guidelines (note that vehicle maintenance packages as well as Select Protect insurance are available to help reduce any damage related costs incurred over the life of the lease)

If you work for yourself, read our guide to car leasing for the self-employed, sole trader and partnerships.

Information is provided as a guide only. Select Car Leasing cannot be held responsible for any personal or business decisions made as a result of information provided in the guides. As with all aspects of taxation, it is the responsibility of individuals and businesses to understand the rules and regulations and act accordingly. As personal and business circumstances can vary, it is also advised that you take professional accounting advice before making a final decision.

If you'd like to speak with our friendly team about business vehicle leasing, simply call 0118 920 5130 or email us at: enquiries@selectcarleasing.co.uk

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