In this post-pandemic world, more businesses than ever are turning to short-term vehicle leasing.
With COVID lockdowns and the subsequent semiconductor shortage causing a halt in vehicle production, car shortages are expected to last until 2024. Short-term car leasing offers a simple solution to this problem and provides a cost-effective way to obtain top-quality cars for a flexible contract period. There are numerous advantages to choosing short-term leasing for your business; that’s why here at Meridian, we’ve written this article that explains the main benefits.
Tax incentives
One huge economic benefit of short-term leasing through your business is that 100% of your VAT payments can be reclaimed if your vehicle is used solely for commercial use. This is reduced to 50% if your vehicle is used both privately and commercially. When you lease a vehicle, your road fund license is typically built into the cost of the lease; this maximises convenience and makes budgeting and managing your expenses much simpler.
The UK Government also offers several tax incentives for leasing an electric vehicle. You are able to deduct the entire lease cost from your pre-tax profits, providing a huge saving in corporation tax. There are also other benefits to electric vehicles; not only does an electric car save you money on ever-increasing fuel costs, but it also lessens the environmental impact of your business.
Low risk
In these challenging economic times, the last thing you want is to tie company money up in an asset that will lose value over time. With short-term leasing, you return the vehicle at the end of your agreed term, so you won’t have to absorb the financial hit of depreciation.
Are you working on a project with no fixed end date? Perhaps you have a new employee who is still on probation? Whilst contract hire is cost-effective when you can commit to a fixed term, there are many situations where you may be unsure how long you’ll require a business vehicle. This is where short-term leasing comes in; it offers reduced commitment and you won’t be subject to an early termination penalty if you return your vehicle before the expected date. This contrasts with business contract hire, where returning your vehicle early means you’ll typically forfeit 50% of the outstanding payment.
Flexibility
With no long-term commitments and adjustable terms relating to mileage, short-term leasing is typically customisable. This allows the option to amend at a later date if you’re using your vehicle more or less than anticipated. This is a great option for an ever-changing business with varying staff levels and different rates of vehicle usage.
Latest technology
With short-term leasing, you are able to change your vehicle regularly. As entertainment and safety features are constantly updated and improved in all new vehicles, this means you will benefit from the most cutting-edge technology available. Your business is constantly evolving, so your company vehicle should reflect this; short-term leasing gives you the ultimate flexibility to change your car on a frequent basis.
Swift delivery
With the current automobile supply chain shortages, lead times when purchasing new vehicles can be lengthy and unpredictable; you may be left waiting for months! At Meridian Vehicle Solutions, we consistently maintain a core stock list, so we’ll always be able to offer short lead times. We can deliver in as little as 5-10 working days from receipt of booking. When you lease with Meridian, you have a guaranteed time frame for when you can expect your new car and we’ll always keep you informed on the progress of your delivery.
Looking for a car leasing company for your business?
Meridian Vehicle Solutions is an independent car leasing company, based in Chesham and Hemel Hempstead and operating nationwide. We can suit the demands of any business with a wide range of vehicles available for short-term leasing. We pride ourselves on our competitive prices and friendly customer service and we'll go above and beyond to find a car leasing deal that works for you. To discuss the needs of your business or to get a quote, simply contact our team today.