Cost-effective Benefits of Business Van Leasing

Business vehicle leasing is a way of purchasing a new fleet of commercial vehicles by paying small monthly instalments over the curse of a few years, rather than buying the fleet in one sum. After the contract period of a few years is over, you hand the vehicle back and get a new one. If this is the first time you’ve heard about leasing, here are some of the cost-effective benefits of business van leasing.

Better Cash Flow

There’s a reason why car manufacturers are making new cars – they’re just better and people want to drive better vehicles.

A brand-new van will cost at least £25,000 which is a big number for most businesses, especially as an upfront payment. The ability to pay in small monthly sums is one of the cost-effective benefits of business van leasing. You can then spend the money you have saved from a lease package on other areas of the business.

Tax Benefits

One cost-effective benefit of business van leasing is the money you, as a business, can save on tax. VAT registered businesses can claim back 100% of the VAT on the lease vehicle, provided it is only used for business use and never used as a personal vehicle.

As a limited company, you can offset the monthly rental against your corporation tax, or if you are a sole trader, you can offset the rental against your yearly taxation. If your leased van emits more than 160g/km of CO2 then you can claim 85% back and anything less than this, then you can claim 100% back.

Avoid Depreciation

We could all benefit from a new fleet of vans. Unfortunately, as soon as you buy a brand-new van and drive it out of the showroom the value will drop. This is why leasing is cost-effective as you avoid these depreciation cost. Instead, you lease the van for a contracted period of time and when that time is up, you can trade it in and get a brand-new van instead.

We can sort cost-effective business van lease deals, from the lease of one van to a whole fleet of vans. Find out how we can help you by emailing, calling 01425 474070, or using our contact form. One of our friendly team members can discuss your options and find a cost-effective lease deal for you.