BUSINESSES need cars. The bigger the business, the more staff they have, the more cars they will likely need – with car leasing perfect for businesses.
Many businesses have different uses for their cars. They need their staff to be able to get to work easily every day so they supply company cars for them to drive. They require their staff to go to meeting after meeting outside of the company office and so on.
However, purchasing cars for your business can be a financial and logistical nightmare. That is why Hippo Leasing offers an alternative. Instead of buying a large selection of cars outright or even trying to finance them through costly agreements, Hippo Leasing offers you the chance to lease your cars.
Car leasing is the best choice
Businesses can’t waste money, especially in the current financial climate. They need to find affordable ways of achieving the necessities such as a fleet of reliable cars. Cars are expensive to purchase and hassle to sell when you want to get rid of them. That means buying them outright or getting them through a finance like hire purchase agreements are not the best choice to make.
For affordable and hassle-free ways of accessing cars for business, car leasing is the ideal choice. You can get brand new and used cars through leasing. You don’t have to keep the cars, you can just hand them back when the agreement comes to an end and the monthly payments are lower than most finance agreements.
Why are the monthly payments lower on car leasing?
Cars lose their value quickly. At times, driving a car out of the showroom can reduce its value by up to 50%. With finance agreements like Hire Purchase, you are paying monthly payments to cover the value of the car when you first buy it. However, as soon as you have signed that agreement and driven away, that car has lost value. For a business, that arrangement doesn’t sound sensible.
Whilst finance agreements work by you paying off the value of the car, leasing agreements work differently. The monthly payments in a leasing agreement pay to cover the cost of the depreciation in value of the car. Because the cost of depreciation is lower than the value of the car, the monthly payments are lower for a car lease.
This is why businesses are asked to set an annual mileage allowance on each car they lease. The more miles a car drives over the period of a lease or finance agreement, the more it depreciates in value. That means the higher the allowance, the higher the monthly payments will be. However, leasing agreements are still often more affordable on a monthly basis than finance agreements regardless of inevitably higher mileage requirements.
Don’t worry about depreciation
One of the major concerns for businesses when it comes to acquiring cars is what to do with them at the end of their agreements. With finance agreements, businesses are forced to take ownership of the cars. After years of being driven, the cars the businesses take ownership of will have diminished value. The hassle that can follow that with businesses trying to sell these cars is not always worth it.
However, with a car leasing agreement like Business Contract Hire (BCH) or a Business Contract Purchase (BCP), you don’t have to worry about that. At the end of these leasing agreements, instead of taking ownership of the cars, you can hand them back to the lender. That means that as a business you don’t have to worry about depreciation and trying to sell the cars afterwards.
Leasing brand new cars
Successful businesses are often up to date technologically. With cars, you have the option to lease brand new and used cars. If you wish to stay up to date with the latest technology that is available, then leasing brand new cars is the best option.
For businesses looking for brand new cars, car finance agreements often put those cars out of financial reach. However, with leasing agreements, those brand new cars become more affordable, allowing businesses to get them.
Businesses don’t require a deposit
If you are a business looking to lease a fleet of cars, you may not have the money available to place a deposit on all of them. However, with car leasing agreements, a deposit isn’t always required. In fact, you can easily get lease deals for your business without placing a single penny towards a deposit.
The slight downside to no deposit business leasing is that your monthly payments will obviously be slightly higher. This is only because the money you would spend on a deposit will instead be spread across the duration of the agreement. There is no significant rise in the amount you will pay a month, so if you are tempted to lease, you have both the option to pay a deposit and not to.
Hippo Leasing is ready to help you get the best cars for your business. They have a great selection of cars ready for you to browse. Their staff will run through the requirements, your business need and find you the right cars on the best deal.