If you’re a business owner in the UK, it can be tricky to keep up with rising fuel, energy and car ownership costs, especially if your work requires you to have multiple vehicles on the road. The good news is that there are a variety of affordable alternatives to full vehicle ownership that business owners can take advantage of, another option can be including car leasing. Let’s take a closer look at how leasing vehicles can have a positive impact on the bottom line of your business and help you to save some much-needed cash on the road:
How leasing a vehicle works:
While the price of hiring vehicles in Ireland and the UK has risen sharply along with fuel and energy prices, leasing is seen as an increasingly favourable and affordable alternative. Leasing a vehicle is very similar to renting, with the main difference being that car leases last for a longer period (usually 6-12 months). Leasing a vehicle offers far more stability and security in the long term and is considerably cheaper than hiring.
What are the benefits of leasing a car:
As well as being one of the cheapest, most cost-effective ways of getting a company vehicle on the road, leasing cars is preferable for many business owners due to the fact that leasing contracts and agreements may be renewed multiple times at a flat rate. Business owners may be able to strike deals for multiple vehicles, while long-term payment plans can help you to spread out the cost to suit your company budget. Another advantage of leasing over car hires and Personal Contract Purchases (PCPs) is the fact that collateral may not be required to seal the deal, while employers will not have to worry about frequently re-renting vehicles. It may also be worth considering covering yourself with contract hire gap insurance to gain extra peace of mind when entrusting your employees with driving new cars.
How an electric car could help your business:
The leasing of electric vehicles (EVs) and hybrid cars has become increasingly popular amongst automotive companies for two main reasons: while the rising prices of EV batteries and public charging points means that electric/hybrid drivers are not invulnerable to rising fuel and energy costs, running an EV is still considerably cheaper than running a traditional petrol or diesel-powered vehicle (at approximately £41 per charge, less than half the amount required to fill a 47-litre petrol tank). This could help your business to save a significant amount of money, especially if you have a fleet of vehicles on the road. The other main reason is that EVs are a considerably greener and more environmentally-friendly option than older cars, as they produce zero emissions (due to their use of closed-loop systems) when running – leasing EVs could go a long way in helping you to reduce the carbon footprint of your business.
