Leasing a car for your business has several benefits. It not only reduces car buying and maintenance expenses for the company, but also lets you deal with fixed motorcar costs, which makes it easier to control and expand on business projects. This guide will help you to start your leasing vehicles project.
Searching for a vehicle
You can find many business car contract companies listed in your local telephone directory or by going online. What to look for in a car contract company You will find that some companies offer a wide variety of models to choose from and run offers from time to time that might include free car accessories on specific models. Look for a company or dealer that can give you lease options like vehicle maintenance, tyre replacement, mechanical repairs and adequate insurance coverage. A good company will be willing and flexible to discuss options that accommodate your business needs. Choosing your vehicle Narrow your choices by getting free quotes on the particular models that you are interested. Keep in mind that, even if a company is not located in your city, it might offer to deliver the vehicles that you want to lease to your own business location.
Read the fine print
Know all the legal and financial details of the deal before signing the contract. Leasing and maintaining vehicles You may lease your vehicles through the leasing company financial institution or your business’ bank. In such case, your financial institution will contact and make the necessary arrangements with the leasing company. Make sure that you know the terms of the contract, including car leases period, amount of driving miles per year, insurance coverage, and monthly payments. Maintaining your leased vehicles The dealer or leasing company expects you to return the leased vehicles in reasonably good condition. So, mechanical attention to the leased vehicles and unexpected repairs should be taken care of as part of the contract, if necessary. Negotiate a maintenance schedule for the vehicles and mechanical repairs not included during normal vehicle service, if necessary.
Leasing and your company taxes
If applicable in your country, your lease monthly payments will include the goods and services tax (GST). In most cases, the amount of GST that you pay is deductible from your company taxes. How much you can deduct and under what terms varies from one country to another. Check the current business tax code in your area for more information.