Anyone taken out a Business Car Lease? How does it work?

[Theo Allen]

So thinking of taking out a Business Car Lease, but can't find a whole lot of info about them online. Is there a minimum a business must be making to get a lease? If a business were to stop making enough money during the lease, do you hand it back or does the owner foot the bill? Anyone got any information?

 

[Mark T Jones]

The leasing company will evaluate your ability to repay based mainly on historic information

Different leasing companies have different appetite for risk. They will half step certainly want a guarantee from home owning directors if the credit isn't strong

In pretty much every case, you wil be committing to fixed payments for a fixed period of time. If you can't pay they will look to enforce the guarantee.

 

[vibrantcolour]

Bear in mind if you take out a car lease in the name of the business, paid for by the business, and have personal use of that vehicle you will be liable for benefit-in-kind company car tax.

You can find out how much here: http://www.fleetnews.co.uk/cars/car-tax-calculator/

The majority of business contract hire leasing deals will be available on a personal contract hire deal, for the same price plus the VAT.

You then take money out the business to pay for the vehicle as an expense claim, at 45p per mile (up to 10,000 miles, then 25p thereafter).

 

[MyAccountantOnline]

So thinking of taking out a Business Car Lease, but can't find a whole lot of info about them online. Is there a minimum a business must be making to get a lease? If a business were to stop making enough money during the lease, do you hand it back or does the owner foot the bill? Anyone got any information?

I've leased my cars for the last few years and used this company
http://www.companycarleasing.com/
service is absolutely excellent and they do lease to start-ups which not all companies do. Have a read of the leasing guide on the website.

Word of warning at the end of the lease the car is inspected extremely thoroughly and they will charge for almost any marks so it really is worth making sure the car is A1 before it goes back.

 

[MyAccountantOnline]

Bear in mind if you take out a car lease in the name of the business, paid for by the business, and have personal use of that vehicle you will be liable for benefit-in-kind company car tax.

......

If you trade via a limited company - it doesnt apply to a sole trader.

 

[wevet]

Whether lease or contract hire the headline rate is usually incredibly attractive. The small print is the excess mileage charges. You must be very realistic in what miles you are likely to be doing. If not you risk a ruinous bill for miles at the end of the contract.

Usually the headline quote is based on 10,000 miles under 30 miles a day which is totally inadequate for most people, especially business use. The real horror to look out for are the stepped excess miles charges so for the first 8,000 miles over say 10 pence per mile for the next 8,000 miles excess miles charge jumps to 40 pence per mile and so on.