When looking for the best vehicle for your business you need to consider some important factors. These factors can include; what would you be using the vehicle for, how many people will be using the vehicle and how much would it cost to purchase it for the business.
However, businesses also have the option to lease a vehicle for their companies. Let’s take a look into what a business car lease would consist of.
While also providing you tips on how you can find the perfect car lease for your needs making use of multivan leasing deals that will provide for the needs of your business.
What Does Business Car Leasing Mean?
This refers to businesses leasing a car, a van or a fleet of vehicles in exchange for monthly payments for a fixed time period.
Businesses can also receive tax benefits for leasing a car and just like the personal lease policy these vehicles are then returned.
How to Lease a Business Car
Using an online leasing company service you can use the following steps to find the ideal car for your business.
Choose the vehicle that you want to lease
From the variety of options that are available to be leased, you need to check for the one that will suit your business needs best.
You can be specific in your online search by using specific keywords such as the body type, model, and your budget.
To find out the total costs of the vehicle that you have chosen, you can add the maintenance and insurance package to the search to have a rough idea of what it will cost you to lease the car that you want.
The maintenance and insurance package includes services such as:
- Minor repairs
- Accident management
- Insurance
- Breakdown cover
- Servicing
Get a Quote
Once you have found the car that you want to lease and have added the maintenance and insurance package you can submit your findings to receive a quote.
Finance Application
Your business will have to go through a credit check before they can lease a car. This process is to ensure that the business will be able to afford and make the monthly payments of the car that they are applying to lease.
Here are some of the information that will need to be submitted for the credit check:
- Name and address of the director/directors
- Opening balance sheet
- 3-6 month bank statement
There are some other funding options that can be looked into when looking for financing for your business car lease.
These funding options includes:
- Operating lease (rental)
This means renting a minibus for your school.
- Hire purchase
If you are looking to own the vehicle longer than the standard three year lease period then consider taking out a hire purchase.
- Finance lease
Independent schools have the option of getting a loan to help finance the need for a vehicle.
- Sale and leaseback
If the school already owns a minibus and wants to sell it, they can then lease it back from the buyer.
Finalise the order
Once you have the funding option and are ready to submit your lease application, then this is finalised and moved along to getting the paperwork and the car ready for your lease.
Sign the financial documents
Sign any documents that need signing to seal the deal.
Get the car
Once all documents are signed, you will then have your car delivered to your business.
Choosing a Minibus/Multivan for your Educational Institution
For an educational institution, having a minibus/multivan at the school is important especially for those day trips that require transportation for the students from and to the school.
Here are the benefits of leasing a minibus for your school day trips.
- The lease payments are fixed so they can be included in the budget for each month.
- They come with a full maintenance package and safety inspections.
- Breakdown cover and Road Fund Licence is included in the monthly payments.
Minibuses also come with unique safety features that makes these the perfect vehicle for your business needs.
These safety features includes:
- An emergency exit and an escape hatch in the roof.
- First aid kits are provided with each minibus.
There are also different sizes so lessee’s have the option of choosing between an 8/9 seater, an 11/12 seater, an 14/15 seater and a 17 seater.
Teachers or the people who will be driving the minibus will get the Midas Training which is the Minibus Driver Awareness Scheme which is a requirement for all schools to have when using a minibus as their mode of transport.
Tips to Getting the Best Business Car Lease
Here are some tips you can take into consideration when looking to lease a car for your business.
If you are a first-time business car lessee, these tips are especially useful to help you.
Have a budget for the lease
It is important that you are not going over your budget or what your business can afford when you are looking to lease a business car, this will make it difficult to keep up with the monthly payments if you choose an expensive option.
Mileage limit
Having a rough estimation of how many miles you will be driving the vehicle or vehicles is important when you are working out your monthly payments.
Returning the vehicle(s) with excess mileage will cost you at the end of the contract.
Initial Rental
The initial rental cost is the initial payment that is given at the start of the contract, this can be any amount of the initial instalment which means the monthly payments are less.
Insurance Cover
While you are leasing a business car, you will need to have comprehensive coverage insurance for the duration of the contract.
Leasing companies also offer insured car leasings which can cover the insurance requirement of wanting to lease a car.
Conclusion
Finding the right car to lease for your business can be a difficult decision if you are not sure what you are in the market for or how many you would need to meet all your business transportation requirements.
However, for a business such as an Educational institution you can weigh your options between hiring buses for day trips or simply choosing the option of a Multivan.
By following this comprehensive guide you can find the best vehicle that will suit your business needs and fit into your budget.
