This concise guide outlines the benefits of leasing a car, and how get the best car lease deals through negotiation.
When you need a car for business, leasing can be a thrifty option if you’re self-employed and tax-registered. As long as the car is used at least 50% of the time for business, the monthly lease payments can be deducted from your profits and reclaimed on tax, though you may need to go over specifics with an accountant.
How to get the best car lease deals
If you’re not self-employed there are still plenty of benefits to leasing a car and ways to get a better deal, let’s take a look.
Why lease?
We’ve talked about the compelling tax break if you’re self-employed, but for any business woman, the bite sized monthly payments of car lease deals can be much easier to manage than the larger upfront and monthly payments of a car loan or burden of buying a car outright. It’s well established that with leasing you can end up paying more over time, but there’s also the risk with buying that you’ll be in the position where you owe more on the car than its current total value, a situation you won’t land in with car lease deals.
The allure of getting a brand new car ever few years can be tempting, washing your hands of the stressful selling process and having to spend far less on maintenance issues as you’ll always drive cars that are still in their prime. If you’re not bothered about owning the car or the monthly payments just better suit your lifestyle and budget, leasing is probably the right method for you. Check out our list of favourite cars for business women to lease.
Getting the best car lease deals
To get the best car lease deals, a bit of research is involved. As a lease involves paying for the depreciation of a car during the time that you drive it, cars that depreciate quickly will be leased at higher rates than those that do not. Choose something that holds its value well over time.
Check for intelligent car lease deals at companies such as ICL. Often you can find a better deal on a car that is proving difficult to push, just be careful that there aren’t catches in the contract that devalue the deal.
Investigate the invoice price of your desired car before comparing sale price quotes from different dealers. Look out for the best deal then go back to the dealer and ask for a lease based on the sale price he quoted, which is sure to get you a better deal than going straight in with lease quotes.
Set your preferred terms making sure to consider the mileage limit as excess mileage charges can be extortionate. Establish that what is considered as excess wear and tear is reasonable and be aware of excess costs. Choose the length of your lease which ought to be under 3 years for a better deal, and don’t overlook all the additional charges which can push the price above what you were expecting.
Double check that the contract is true to what you agreed after setting your terms and monthly repayment amount. Including GAP insurance, even at additional cost, is always worth it, and adding on a maintenance package can save you hassle and money at the end of your term.
Use these tips to get yourself the best car lease deals and a business ride you can be proud of.
