As much as we might not like to admit it, first impressions matter and the business world is no different. If the first thing your clients see is you pulling up to the building in a car that’s, well, let’s say it’s seen better days, they might start to have second thoughts about the quality of your work.
The growing Asian market is becoming increasingly important for businesses around the world now, and statistics have shown how brands like Mercedes-Benz, Audi, and BMW are becoming more popular as they are seen as a status symbol. In fact, China recently overtook Germany as BMW’s second biggest market, after the United States.
Equipping your company with such fancy cars may be necessary, but the question is, how do you finance your decision – responsibly?
How Can You Get the Car You Want for your Business?
Status symbols don’t cheap, though, so you may be left wondering how you can afford to spend the cash on what might seem like a luxury at the cost of the rest of your business. Well, leasing vehicles rather than buying outright is becoming increasingly popular in the UK, especially amongst businesses.
Companies like Select Contracts offer you the chance to drive the latest cars on the showroom floor without having to worry about the hassles of ownerships like depreciation. You’ll pay a monthly fee—determined by the make and model of your car, the length of your contract, and your annual mileage—and at the end of the contract you’ll simply return it to the lender.
There are a plethora of special offers available in the market, which makes car leasing a competitive market for providers, but a convenience for users. Companies are scrambling to win customers, and those that are easier to get found on search engines, give better value or save customers’ time in their endeavour, win. Car Leasing Made Simple, for example, list special offers right on their homepage, along with the business vs. personal lease prices comparison. The leasing process only takes minutes. Simple and straightforward.
Despite the pros and cons, leasing business vehicles is better than buying them in cash. But there’s a catch you should be aware of.
So What’s the Catch?
As you may have noticed, the difference between this and a hire purchase is that you won’t ever own the car. You’ll simply be paying to use the vehicle. This means that the only issues that can arise from this type of agreement generally spring from problems regarding your annual mileage or if you decide to terminate your contract early.
If you go over your expected mileage, you’ll have to pay for an excess mileage rate. Because of this, it’s crucial that you know your driving habits as well as prepare for any changes that could occur to you personal or professional life during the course of the contract.
For businesses, a leasing contract often makes much more sense than having to take out a personal loan or other form of finance. You’ll also qualify for additional extras depending on your locale, such as the ability to reclaim VAT if the vehicle is only to be used for business use.
Your business image is important, indeed – and your company car can help you in boosting your image. However, you need to make sure that your business performance lives up to your clients’ standard. It’s meaningless to have a fancy business image but with sub-par services and products, don’t you think?