When it comes to leasing a car or van, the choice between choosing personal or business leasing can be a difficult one.
Obviously, if you aren’t applying for vehicle finance as a limited company, partnership, sole trader or LLP, then it’s an easy decision to look at personal leasing. But if you are involved in a business, and are planning to use the vehicle as part of that involvement, you may be eligible for business leasing – and the benefits and considerations that that can entail when leasing from Car Lease 4 U.
So what should you choose?
Types of lease contracts
Depending on your decision regarding business or personal leasing, the choice of which type of lease contract available to you varies; because there are a number of different types of lease contracts available, each tailored for business or personal requirements.
For the business leasing customer, there is:
For the personal leasing customer, there is available:
Each of these as their own advantages, depending on your own personal requirements. So, it is advised that the links relating to each of the contract types above are followed to make sure that it is right for you; both personally and maybe as a business.
Business leasing
Occasionally, some manufacturers offer better rates for business customers only, which can result in a price difference between business and personal prices – which is one of the reasons that it may be advantageous to you to choose business leasing instead.
Benefits exist such as the fact that, as for a business, it is possible to reclaim up to 50% of the rental (for cars) or up to 100% (on commercial vehicles) against tax if the vehicles are leased on a business contract hire agreement.
VAT can also be claimed back with business leasing.
So, how do you find out if you are eligible for business leasing? And what is required from you if you are?
Firstly, take yourselves off to the application that you can find here to find out if you are likely to be eligible for finance. If you find that you are, then there is certain information that you will need to supply to us in the process of applying.
This information includes:
- Company details – including name, address, company reg. number and annual turnover
- Director details – including name, date of birth and marital status
- Business bank details – including bank name, account number and sort code
Whether you are self-employed or not, it is individual financial circumstances and preferences that determine the type of business leasing contract that is suitable for you. If you’re uncertain or have any questions about what to consider when choosing a contract type, ask one of the Car Lease 4 U Sales Advisors – they will be happy to help.
Personal leasing
Personal contract hire leasing is very similar to a business contract hire agreement, with the exception that all personal contract hire prices include VAT, and the offers from manufacturers sometimes aren’t as forthcoming.
But, apart from that, the benefits of leasing a car through Car Lease 4 U are just the same:
- Fixed, low monthly payments
- Low initial rental
- Inclusive vehicle tax and breakdown recovery
- Optional maintenance package to spread the cost of servicing
- The opportunity to drive a new car every two, three or four years
- Free delivery of vehicle to anywhere in the UK (dependent on location and manufacturer)
As with many financial decisions, there are considerations to be made when deciding to lease a car. For contract hire, these include:
- Early termination of a leasing contract can be expensive
- If you exceed your agreed mileage, you will be charged extra on a ‘pence per mile’ basis
- The vehicle must be returned in a well-maintained condition. Any damage that exceeds the Fair Wear and Tear guidelines will be chargeable
Find out more about the benefits and considerations in our guide to personal contract hire.
So, how do you find out if you are eligible for personal leasing? And what is required from you if you are?
Firstly, take yourselves off to the application that you can find here to find out if you are likely to be eligible for personal leasing finance; and if you find that you are, then there is certain information that you will need to supply to us in the process of applying.
This information includes:
- Personal leasing details – Including marital status and number of dependants
- Address details for the past five years
- Employment details for the past three years
- Your bank details – This information is used to determine how you have managed your existing accounts and your ability to make payments on time. No money can be taken from your account without your permission
Additional information might be required, such as more detail regarding employment and monthly income and expenditure (especially if you are not currently in full time employment, or if you’ve only been with your current employer for less than five years), but this is all to make sure that you are not ‘over-stretching’ yourself and that you are able to afford to enter into a personal leasing contract.
FAQs
Whichever option you choose, you can be assured that Car Lease 4 U is here to help – and they are all available to talk you through the processes involved from deciding on your options to the final agreement.
If you have any more questions regarding the choice between personal leasing and business leasing, or indeed the whole concept of leasing itself, then visit our FAQs page here.