Personal contract Hire
With the benefit in kind taxation system in place many company car users have questioned the validity and cost of having a company expensed car. The upside of this is often negated by the amount of tax incurred. Naturally for many employees a company car is an essential business tool, as much as a fax machine or photocopier.
For this reason more and more companies are offering alternatives to company cars, such as increased salary or tax free mileage allowances for their own cars. It is now possible for people to enjoy the inherent benefits of a company car without the tax burden. Personal contract hire, personal contract purchase or personal leasing are all offered in abundance and more and more individuals are realising the benefits of leasing a car rather than owning one. The main benefits of personal leasing are as follows:
1. A free choice of any make or model of car, so you can lease a budget car, lease a BMW or lease a Ford. The choice is yours. 4x4 leasing, MPV leasing, the possibilities are endless.
2. As only the depreciation is financed, VAT is reclaimed by the leasing company and because they have massive purchasing power the monthly rentals are more affordable than you might imagine. Car leasing quote will of course be happy to provide any quotes on cars that you may be considering Absolutely no depreciation risk
3. The contracts are based on time and mileage and this allows you the opportunity of driving a new car every two or three years
4. Personal leasing gives you the choice of deposit - but the more you put down at the beginning the lower the monthly rental.
5. Road tax included
6. You opt for a maintenance package that can include routine servicing, maintenance and repairs. Battery, exhaust and tyre repairs and replacements will be included and you have no risk of un-expected major repair costs
7. The leasing company finance the vehicles and so there is no interest charges or finance commission to worry about
8. At the end of the agreement, you simply return the vehicle (subject to mileage and condition assessment). Certain types of personal leasing contracts allow you to buy the vehicle at a pre-determined price
9. As this type of contract is written in the individual's name, it currently attracts no 'benefit in kind' taxation.
10. Open to anyone, not just company or ex-company car drivers