| Benefits |
Things you need to know |
- Large VAT savings as the leasing company claims back
the VAT when buying the vehicle.
- One payment covers most costs thereby providing better
cash flow forecasting.
- Enjoy manufacturer bonuses and fleet purchase discounts
where available.
- Freedom from disposal worries and risk as this is the
job of the leasing company.
- Off balance sheet financing which is useful when your
company has high borrowings elsewhere.
- No more administration and risk as maintenance, mechanical
repair, replacement car, breakdown recovery, RFL renewal,
tyres, batteries and exhausts can be part of the package.
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- It is a fixed contract to term and mileage but this
can be changed by amending the rental.
- There will be a charge if you return the vehicle early.
- If you damage the vehicle, it needs repairing and it
is your fault then this is not covered under the maintenance
contract.
- Glass and windscreen replacement is not covered under
the maintenance contract.
- Not all the rentals you pay can be offset against your
company profits, as there is a sliding scale restriction
on the allowances for more costly cars.
- 50% VAT recovery on the finance rentals you pay.
- If you return the vehicle in a damaged condition and
it affects the resale value then you may be liable for
the bill.
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