Thanks to the availability of car leasing services in this country, there are now several options being offered when it comes to thinking about purchasing a new vehicle. You can decide whether to lease or buy and there are many advantages to be gained by leasing a car. As you will be aware, with car leasing you have the option to drive a brand new car every few years, or you may opt to lease a second-hand car at a lower monthly cost. As you will also be aware, the minute you buy a new car it begins to lose value, meaning that, in the end, you end up with a product whose value is depreciating over time. This is a very good reason, on its own, to decide to lease a vehicle. You can still drive the car of your choice, while not losing money while doing so.
A good car leasing company will endeavour to help you to reduce your running costs and put you into the right vehicle leasing package to maximise your tax advantage. Many people choose car leasing because it is the most flexible financing tool in the market, often costing less than traditional hire purchase and there are no kilometre restrictions and no fair wear and tear charges. A well-constructed car leasing contract will create absolute flexibility for you and will allow for changes in operating conditions over the term. This makes it very simple for tax accounting purposes. Payments are up to 100% tax deductible as an operating expense. You will also save on the purchase price.
Another advantage in car leasing via a SmartLease in particularly is the reduced early termination charges. You can terminate the contract on a similar basis as hire purchase. This is different to the traditional operating lease packages where termination can be significant and you are at the mercy of the lease company’s generosity. Also, there are no fair wear and tear charges at the end of term and no kilometre restrictions are set and no excess kilometre charges. At the end of the lease term you can offer to purchase the vehicle at the residual value set at the commencement of the contract. It is important to remember that you profit from the sale of the vehicle at the end of term, not the lease company. All in all, leasing a vehicle allows you to enjoy the benefits of ownership, while freeing up valuable capital to use for more productive purposes.