Business cars are crucial in facilitating the day-to-day running of a company. They need to be reliable enough to get employees to meetings and are instrumental in making a good impression to clients. Therefore, it is important that businesses choose the most appropriate way of financing company cars for the fleet.
According to the British Vehicle Rental and Leasing Association, the vehicle leasing and rental industry contributes around £49 billion to the UK economy each year. So, why not start your own business car leasing franchise to cater to this demand? If you start a franchise rather than an independent start-up, you can benefit from an established brand with a tried and tested business model, not to mention an existing and trusted customer base which should allow you to see profits much sooner.
Business Car Leasing Explained
Business car leasing is essentially a vehicle agreement between a finance company and an established business. It is similar to a personal car lease in that you can choose a car, or choose even more if it’s for a business fleet, pay the deposit and make a monthly payment agreement. There are four main types of business car leasing and finance options: Business Contract Hire (BCH), Business Contract Purchase (BCP), Hire Purchase (HP) and Lease Purchase (LP).
BCH is when a business makes monthly set payments over a specified time period in return for a car or a fleet, paying for the depreciation of the vehicle. BCP is similar; monthly payments cover the depreciation of the car during the lease period. But, with this option, it is possible to keep the car at the end of the agreement. HP involves paying off the value of the vehicle via monthly instalments. And finally, LP is similar to BCP, but you will be the owner of the car when the deal ends and it is not possible to return it.
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Benefits of Business Car Leasing
Business car leasing allows company employees to drive the latest cars and cut down on maintenance and fuel costs, all whilst avoiding the up-front costs and depreciation that comes hand in hand with buying a brand new fleet.
It is also a flexible option for businesses; contacts generally last two to four years, and it can be renewed if it is working well. Also, if circumstances change, its relatively straightforward to update the fleet to suit the company.
Also, according to LeasingOptions, if a company is VAT-registered and it takes out a VAT-qualifying contract, there is scope to save even more money by reclaiming some of the tax costs from HMRC. It’s useful to know that if the car is used solely for business purposes, you can reclaim up to 100 percent of the VAT.
Business Car Leasing Companies UK
Hippo Leasing has been operating in the motor industry for many years - since 1960 in fact. A franchise was set up in Bedford and the brand managed to confirm partnerships and franchises with some of the most popular global manufacturers, including Land Rover, BMW, Mitsubishi and MINI.
It moved its showroom to Blackburn in 2013, which acts as a hub of vehicle preparation and delivery to numerous locations across the UK. Now, its in-stock car range has been boosted to 1,000 and is always growing.
Since 2007 the company has delivered large business car lease fleets and individual lease vehicles for smaller businesses. Therefore, with a wealth of experience behind it, Hippo Leasing is an expert in business fleet solutions. It supplies new and used cars or vans from a range of manufacturers and therefore can cater to whatever the business needs, whether that be managing a full fleet of automobiles or being a sole trader.
All Car Leasing
This privately-owned vehicle sourcing and financing company has over 20 years of experience behind it and operates all over the UK. It is headquartered in Mobberley in Cheshire where it helps customers find the perfect car for them, whether it be for personal or business use. The new car will be delivered to the customer’s place of work or home.
The company’s highly skilled sales team is on hand to answer any customer queries that arise during their lease. All Car Leasing reassures customers that it strives to build a long-lasting relationship with them, rather than just finding the best deal on the day and cutting off communication.
All Car Leasing states that its experienced sales team has the buying power to offer its customers low prices, that used to only be possible for large fleet companies.
The company offers a large range of vehicles available on business lease. All Car Leasing reminds customers that even if the vehicle is intended for personal use, it is still possible for it to be leased through the business. The brand states that it often receives business only offers from dealers and manufacturers that aren’t available as a personal lease. For more information, head to the All Car Leasing website today.
Car Leasing Franchises
Green Motion is a car and van rental franchise that is unique to its competition; it provides vehicles with lower CO2 emissions. As well as considering its impact on the environment, it is also the only fully franchised vehicle rental company in the industry. Founded in 2007, there are now over 20 locations operating in the UK.
If you’re keen to make the most of this exciting opportunity, you will need to make a minimum investment of £70,000 and a total investment of £140,000, with £39,500 of this being franchise fees.
Becky Martin, Point Franchise ©