Due to the initial outlay required in purchasing vehicles outright, business leasing has long been a popular route for companies to acquire vehicles. Business leasing allows companies to finance their vehicles without a large outlay of capital and the risk of depreciation. Monthly payments are also fixed against mileage and term, allowing companies the ability to easily predict their ongoing budget.
What are the benefits of business leasing with AMT?
Businesses can gain numerous financial and
operational benefits from contract hire. They include:
Minimal capital expenditure
Low monthly rentals and initial payments with only minimal capital outlay for a business looking to acquire new vehicles. The cash saved can be invested in growing the business.
Your monthly business cost for motoring is fixed, improving your cash flow and providing financial stability. Financial planning and budgetary control become easier to manage.
Unlike many other leasing companies, AMT can offer your business shorter term contracts up to 12 months in length.
Limited credit, no problem
If you are seeking a business agreement and you are a start-up with less than two years trading but great potential or a more established business with some credit history challenges, again, credit doesn’t have to be a barrier to new vehicles if you have capital to commit. We have a range of in-house funding options to get you the vehicles you need.
Better cash flow management
Your business is only paying for the depreciation of the vehicle over the length of your lease contract. So, the total cost is much lower compared to taking out finance repayments on a car or van or buying one outright.
No depreciation risk
The risk is taken on by the funder, your monthly payment is in effect the depreciation cost of the vehicle and you will never be in a position of negative equity.
Repayments can be claimed as a company expense
If the cars you lease emit equal to or less than 130g/km of CO2, you can claim back 100% of the rental payments against tax. However, even if the CO2 emissions exceed this, you can also claim back rentals against tax, but only at 85%.
Claim back 50% of your VAT on your contract hire and 100% of VAT of any maintenance fees.
No need for vehicle administration
AMT will handle all the administration of the vehicle throughout your contract which eliminates the need for your business to spend valuable resources doing this in-house.
Options to finance your business car lease
We offer a range of possible finance options for business contract hire and leasing customers, each with their own benefits, allowing the financial package to be matched to your requirements.
There are four main types of leasing and finance options available to you when you choose to lease a car or van for your business.
Business contract hire (BCH)
Business contract hire (or business leasing) is by far the most popular method by which businesses lease their vehicles with AMT. With Business contract hire you pay a monthly fee over a set period of time, typically between 2 to 5 years. At the end of the contract term the vehicle is returned to us and you can choose to take out another business lease.
At the start of the agreement, a monthly fee is agreed and the amount the ‘balloon payment’ will be. A balloon payment is the final payment at the end of the contract which must be paid to cover the vehicles' residual value.
We aren’t tied to any car manufacturer or funder so we bring you the best lease deals from across the market at any one time. If you’re looking for an economical vehicle to minimise the company VAT you’ll pay, want some advice on choosing the right vehicle for your employees or simply want to see what you can get for your budget, we can help. Try out our car search facility now or give us call to discuss. We’re confident we can find you the right lease deal.
Still not sure?
Then give our dedicated account team a call to discuss your needs on:
0113 387 4240
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