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Contract Hire a BMW 3 Series and enjoy a great service, a great deal and whole lot more…

The 316d maybe the cheapest 3 series but it’s one of the best! There is more about this car than company car drivers reducing their tax bills. The 316d is an enjoyable drive. Yes – the engine size is only 114bhp but this is a detuned version of the 2.0-litre turbo diesel – so does pack a punch but with lower emissions. Not bad. In terms of tech, the car comes with electronic climate control, blue tooth and cruise control.

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Contract Hire a Mazda 3 and enjoy a great service, a great deal and whole lot more…

The Mazda 3 is an enjoyable car to drive with sharp looks, plenty of kit and low running costs. The latest improvements made to the Mazda 3 include an upgrade in its handling. Driving enthusiasts will revel in the car’s handling. The super-efficient diesel engine is an ideal choice for a company car. The car is very cheap for company car tax. In terms of tech, the SE-L Nav incorporates an easy to use sat-nav system into the central 7inch display.

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Contract Hire a BMW 1 Series and enjoy a great service, a great deal and whole lot more…

The BMW One Series is a compact premium family hatch back. It’s rear-wheel drive set up is usually found on sports car. The new series 1 is more spacious and a smooth drive taking bumps and potholes in its stride. The 1 series has sharp handling and decent level of grip. The car comes with a host of impressive highlights including Sat Nav, 16” alloy wheels, climate control and park distance control.

This new 116d SE Business uses the same economical 116d engine as found in the SE, Sport and M Sport models meaning a CO2 figure as low as 94g/km with combined economy of 78.5mpg when fitted with 16” alloy wheels (with manual transmission).

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Business Vehicle Leasing or Buying: Which option is best for you?

Unsure whether to lease or buy your business vehicles? Our guide should help you determine what’s right for your business.

If you’re in the market for new business vehicles, you might be wondering whether it’s more beneficial to lease or buy. The short answer – you should only consider buying if your company finances are really healthy. That’s not to say all cash rich SMEs should definitely buy business vehicles though. At the end of the day, leasing and buying both have their pros and cons, which is why it’s crucial that you understand the differences.

When it comes to determining whether you should lease or buy, you need to consider a number of factors that are specific to your business. To help you make the best decision, we’re going to explain the advantages and disadvantage of both leasing and buying.

The advantages and disadvantages of leasing and buying business vehicles

Contract Hire Pros

Otherwise known as business contract hire, leasing is where you agree to hire a vehicle for a fixed amount of time at a fixed rate. For example, Toomey Leasing source and buy various vehicles from major manufacturers and brands and then lease (rent) those vehicles to you for business purposes. Our  contract hire typically last between 2 and 4 years, and at the end of the contract, you will return the old vehicle in exchange for a new one and a new lease contract.

Let’s say you want some of the latest prestigious vehicles or vans for your employees to drive around in. Rather than finding the funds to buy the vehicles through your business, Toomey Leasing will enable you to hire them on a short-term or long-term basis for a fixed price. Basically, leasing enables you to have access to the vehicles you need to run your business without having to purchase those vehicles outright or from hire purchase providers.

The initial payment of a contract hire agreement and the monthly payments are lower than that of hire purchase vehicles, meaning a smaller impact on your cash-flow. You can reclaim 100% of the VAT on any of our contract hire vehicles that are used for business purposes only. If you use our lease vehicles for private use too, you can still reclaim 50% of the VAT.

When you lease vehicles from Toomey Leasing, you can also select from a range of maintenance packages which include all costs of servicing, breakdowns and repairs in the monthly price stated in your contract. The road tax is included in the fixed monthly cost too.

Contract Hire cons

The only real downside to contract hiring your business vehicles through Toomey Leasing is that you’ll never have full ownership of the vehicles. However, this also means you won’t lose money on depreciation costs, which is another big selling point for contract hire. As you won’t actually own the vehicles, Toomey Leasing takes the risk on the resale.

Buying pros

The key advantage to purchasing your company vehicles outright is ownership. As they will be 100% yours, you can treat them as assets and trade or sell them whenever you wish. You can also reclaim any VAT included in the cost but only if the vehicles are solely used for commercial purposes.

Buying cons

Now for the disadvantages of buying. When you purchase a vehicle outright, you have to pay the full cost either in a lump sum or in monthly payments. A large down payment is also required before driving off in your new cars or vans. Unlike with leasing, you cannot claim 50% of the VAT back on vehicles that are also used for personal reasons.

You also need to be aware that experts suggest a new vehicle loses up to 40% of its value the moment you drive it off the forecourt. Plus, all the maintenance and repair costs must be met by you – and that these costs will increase as your vehicles get older.

Which option is right for your business?

There are many things to consider before choosing to lease or buy your business vehicles. We’ve already established that cash flow, maintenance costs and your wish for ownership are key considerations, but as always, the final decision is yours. To make things a little easier, we’ve shared our expert view on whether you should lease or buy.

Seriously consider Contract Hire if you:

  • Want to save time and money
  • Want to free up and improve cash flow
  • Prefer low monthly repayments
  • Don’t want ownership
  • Don’t want to pay high vehicle maintenance and repair fees
  • Like to replace your vehicles every few years
  • Have a predictable and stable business
  • Want less administration for your company
  • Haven’t the time to trade and sell your vehicles

Seriously consider buying if you:

  • Can easily pay outright or higher monthly payments
  • Prefer to own your company vehicles
  • Are happy to pay high vehicle maintenance and repair costs
  • Don’t mind driving and owning the same vehicle for a number of years
  • Expect your business journeys to fluctuate

Just remember, if your business is in good financial health and you don’t need to change your vehicles every 2 to 3 years, you may decide it’s better to buy your vehicles outright or via a hire purchase provider. However, if you only need vehicles for a relatively short time, you will spend significantly less each month on daily rentals or short-term and long-term contract hire deals from Toomey Leasing. If cash flow is an issue and you want to be free from the hassle of managing your fleet, contract hiring your business vehicles is definitely the best way forward.

Want to find out more about business vehicle leasing and the costs involved? Contact Toomey Leasing for a no-obligation example solution for your business today.

 

Toomey Treat Clients to the Ultimate Typhoon Experience Day at RAF Coningsby

Toomey Leasing Group, one of the UK’s largest independent providers of vehicle fleet and leasing solutions has sponsored the RAF Typhoon Display Team for the past 4 years due to an undeniable synergy between the two organisations. Toomey Leasing provides the RAF Typhoon Display Team with several support vehicles and regularly gets the opportunity to provide key clients with a tour of the Typhoon Display Team facilities combined with a breath-taking air display at RAF Coningsby Read More