Business Car Leasing FAQs | Expert Answers & Tips

Business car leasing allows companies to lease vehicles for their employees or operations without the financial burden of owning them.Are electric cars available for business leasing?

Businesses select the vehicles they need, agree on lease terms, make regular payments, and return the vehicles at the end of the lease term.

Benefits include lower monthly payments vs buying, no depreciation concerns, improved cash flow, and the ability to claim back VAT. It also means you can renew your fleet every few years for brand-new vehicles.

Business leasing is for companies, whereas personal leasing is for individuals. Both have pros and cons, so it is best to get in touch with us if you're unsure which way to go.

Most businesses, including sole traders, partnerships, limited companies, PLCs, charities, and more can lease cars, though eligibility may vary based on financial stability and creditworthiness. Get in touch to find out!

Standard business leases range from 24 to 48 months, but we offer a little as 6 months if you require a shorter lease.

A typical agreement includes road tax, manufacturer's warranty, breakdown cover, and optional maintenance packages.

Modifying a leased car is generally not allowed, as the vehicle must be returned in its original condition. However, some are acceptable. Get in touch to clarify if you have a modification in mind.

Yes, you can, just make sure you get it removed before the car goes back.

Yes, you can choose the colour, features, and specifications of your leased car, just as you would if buying. This is known as a factory order, where we order your car to be built as per your desired specification.

Yes, electric cars are available for leasing and can offer lower running costs and tax benefits compared to traditional petrol or diesel cars, especially when it comes to BIK.

While standard leases are 24-48 months, we do offer leases for as little as 6 months if required.

Yes, businesses can lease multiple vehicles to create a fleet, benefiting from potential discounts for multiple orders.

A good credit score can secure better lease terms, but options are available for businesses with varying credit histories.

We know it isn't always black and white, which is why we work with underwriters to ensure they understand your business. This may include supplying us with documents, such as draft or full accounts (if not on companies house), management accounts, P&L or balance sheets, and bank statements. It is always best to explain your business if you think there is something that might restrict lending.

Yes, new businesses can lease cars, often needing to provide a director guarantee (this is where a director will agree to pay for the lease in the event the company cannot).

We work with multiple leasing companies that consider all types of businesses, including those trading for as little as 3 months, with supporting documents.

Yes, some leasing companies will lease to businesses with poor credit, though you may face higher payments or larger initial deposits.

A credit check assesses your business’s financial stability and ability to make lease payments, influencing the terms and approval of your lease.

Yes, sole traders can lease cars for business purposes, often needing to provide personal financial information and business details.

A typical business lease includes the vehicle, road tax, and manufacturer's warranty, with optional add-ons like maintenance and fleet management services.

Yes, most leases require an initial payment, also known as an initial rental, which is typically equivalent to several months' payments. This is typically paid 10-14 days after delivery.

Yes, you just need to request an early termination from your leasing company. There is often a fee to pay to do this, which usually equates to 50% of the remaining rentals.

At lease end, you must return the vehicle in good condition, within the agreed mileage limit, and pay any outstanding charges.

Missing a lease payment can result in late fees and potential damage to your business’s credit score. If you provided a director's guarantee, you may also be required to pick up any missed payments.

In some cases, yes, but it depends on your leasing company and the relationship between the businesses. Please get in touch if you want to explore this option.

Lease payments are based on the vehicle’s depreciation, interest, taxes, and fees. Factors like the car's residual value and your business’s credit score also play a role.

Exceeding the mileage limit incurs additional charges, often calculated on a per-mile basis. It’s crucial to estimate your mileage accurately.

Some leasing companies offer the option to purchase the car at the end of the lease. Just get in touch and they'll provide you with a quotation if they are happy to sell it to you.

The initial payment, or initial rental, is an upfront cost usually equivalent to several months’ lease payments, paid at the start of the lease.

While all costs are outlined in the lease agreement, potential fees like excess mileage charges, wear and tear fees, and early termination fees, can only be calculated at the relevant time.

Leasing often has lower monthly payments compared to buying, but you don’t build equity in the car. It can be more cost effective for those who prefer driving new cars frequently or keep their cashflow flowing!

Businesses can usually reclaim 50% of the VAT on lease payments for cars used for both business and personal use, and 100% on maintenance costs. If the vehicle being leased is a car being used for 100% business use or a commercial vehicle, they can claim back 100% of the VAT on the lease payments.

Excess wear and tear charges apply if the car is returned with damage beyond normal use. Leasing companies provide guidelines on acceptable wear and tear.

BIK is a tax on non-cash benefits provided by employers, including company cars used for personal purposes. The tax is based on the car’s P11d value, CO2 emissions, and your personal tax bracket.

Yes, if you use a company car for personal use, you’ll need to pay BIK tax. The amount depends on the car’s value, CO2 emissions, and your tax bracket.

You don't need to pay BIK if the vehicle in question is classed as a commercial vehicle or the vehicle is being used for 100% business use.

BIK is added to employees’ taxable income, affecting the amount of tax deducted from their salaries.

Leasing an electric company car can reduce BIK tax due to lower CO2 emissions. Electric vehicles attract much lower BIK rates, resulting in significant tax savings.

Lease payments can often be deducted as business expenses, reducing your company’s taxable income. Make sure you consult with an accountant for specific tax advice.

Employers must report BIK on a P11D form, detailing the value of the benefit. Employees use this information for their tax returns.

Yes, the government offers tax incentives for low-emission and electric vehicles, including lower BIK rates and grants for electric vehicles, promoting environmentally friendly choices.

No, car insurance is not typically included in a lease. Businesses must arrange their own insurance and provide proof before taking delivery of the vehicle.

Follow the manufacturer’s maintenance schedule and keep up with regular services. Consider adding a maintenance package to your lease for convenience.

A maintenance package covers routine services and repairs, helping you avoid unexpected costs and ensuring the car remains in good condition.

As all cars are brand new, you'll get a minimum of 12 months breakdown cover as standard. However, most manufacturers will include a breakdown for the duration of the warranty, which is 3 years on most cars.

Report any issues to your leasing company and follow their guidelines for repairs. Using authorised repair centres ensures that the work meets the lease agreement standards.

Maintenance packages often include wear and tear items like tyres and brakes, but it’s essential to check the specifics of your agreement, as you can decide to exclude tyres to reduce the cost.

Yes, if the lease term extends beyond three years, the car will require an MOT. Some maintenance packages cover the cost of the MOT.

At the end of your lease, you return the vehicle to the leasing company. The vehicle will be inspected for any damage or excess mileage. If everything is in order, you simply hand over the keys and can choose to start a new lease with a different vehicle.

Many leasing companies offer the option to extend your lease term. Contact your leasing provider to discuss extension options and terms.

Some leasing companies offer the option to purchase the car at the end of the lease.

The vehicle will be inspected for damage, excess wear and tear, and mileage overages. This usually takes 20 minutes at the address you specify for collection.

Potential charges at the end of a lease include excess mileage fees, damage repairs, and any unpaid lease payments or fees.

Clean the car thoroughly, remove all personal items, and ensure all accessories are in the car. Address any minor repairs or maintenance to avoid charges.

Report the accident to your leasing company as soon as possible and follow their guidelines.