For many businesses, leasing a company car are more than just a perk—they’re a tool for building trust, boosting productivity, and attracting top talent. But if you’re a small business owner or sole trader, you might wonder: is it really possible to lease a company car for under £200 a month?
The answer is yes—but with a few caveats. Let’s break down how it works and what you need to know.
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Why Leasing a Company Car Can Be Cost-Effective
Leasing is often a more affordable option compared to buying outright. Instead of tying up large amounts of capital in a depreciating asset, you pay a fixed monthly fee that covers the car’s depreciation over the lease term.
For businesses, this means leasing a company car :
• Lower upfront costs
• Predictable monthly expenses
• Tax advantages (depending on the car’s CO₂ emissions and how it’s used)
So, if your budget is tight, leasing a company car can definitely be a smart move.
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What You Get for Under £200 a Month
Finding a company car lease under £200 a month is possible, but your options will be more limited compared to higher price brackets. Typically, these deals are available on:
• Smaller hatchbacks and compact cars – Think models like the Vauxhall Corsa, Ford Fiesta, or Hyundai i20.
• Efficient saloons and hybrids (on special deals) – Occasionally, lease providers run offers on eco-friendly cars that sneak under the £200 mark.
• Shorter-term deals or higher initial deposits – If you’re willing to pay a larger upfront payment, your monthly cost may dip below £200.
In most cases, the cars available at this price point will be entry-level trims. They’ll cover all the essentials for commuting and client visits but may not include premium features like leather seats or advanced infotainment systems.
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Factors That Affect the Price
Not every company car under £200 is created equal. Lease pricing depends on:
1. Contract length – Longer contracts (e.g., 36 or 48 months) usually mean lower monthly payments.
2. Mileage allowance – If your business requires a lot of driving, higher mileage limits will push the cost up.
3. Initial rental – A larger upfront payment can reduce your monthly bill.
4. Special promotions – Leasing companies regularly offer seasonal or clearance deals that bring prices down temporarily.
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Things to Keep in Mind
While £200 a month is attractive, it’s important to remember:
• VAT applies – Business leases are usually quoted excluding VAT. So £200 + VAT may actually mean £240 per month.
• Insurance is separate – Leasing doesn’t include insurance, so you’ll need to budget for that.
• Maintenance packages – Some leases include servicing, while others don’t. Check carefully before signing.
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Final Thoughts
Leasing a company car under £200 a month is absolutely possible, especially if you’re flexible with the type of vehicle and the terms of the lease. Smaller cars, efficient hatchbacks, and occasional special offers can keep your monthly payments within budget.
For businesses looking to keep costs predictable while still providing employees with reliable transport, a sub-£200 company car lease could be the perfect solution. Just be sure to factor in VAT, insurance, and maintenance when calculating your true monthly costs.
If you are a professional looking for a car that matches your lifestyle and business needs? Whether it’s for business lease or personal lease, Charlie at Car Lease 4 U is ready to help you find your perfect vehicle.
Give Charlie a call today on 0287 122 8822 to discuss your end of a car lease options and get a quote for your next car lease.