The best way to a brand new car
If purchasing a new vehicle is on your “to-do” list for 2016, you’ll be faced with a number of options on how is best to buy. The default choice for many professionals is to pay cash or take a bank loan. This however, can prove costly long-term, particularly if changing your car regularly.
The views expressed in this article are specifically those of Lion Leasing
Why contract hire might just suit you
Contract Hire is an easy and cost effective way to fund your vehicle, and the icing on the cake is that you can also run the costs through your business.
For a fixed monthly payment you can lease a brand new car without having to find the initial capital to purchase it.
The contract can be fixed to suit your needs and can be anything from 12 months to four years however, two years is the most effective contract length, as after this initial period, with the loss of value from depreciation, it typically makes sense to upgrade your vehicle, and your monthly payments can remain broadly the same.
Because you never own the vehicle, at the end of the contract you simply return it to the leasing company, and start afresh with a new, upgraded model.
All of this means that you never take the risk on the final value, or, have the hassle of selling!
Let’s compare the cost of a brand new Mercedes.
You may just be surprised!
Mercedes-Benz S Class S350 BlueTEC AMG Line
This comparison shows the Residual Value and Total Loss over 24 months when comparing Cash Purchase, PCP and Lion Leasing Contract Hire.
Cash Purchase
- Price: £64,888.60
- Residual Value: £35,975.00
- Total Loss: £28,913.60
PCP
- Deposit – £14,159
- Per month – £660.50
- Final balloon payment – £35,975
- Total payment : £69,996.00
- Residual value: £35,975.00
- Total Loss: £34,021.00
Lion Leasing Contract Hire
- Initial payment – £3,591
- Per month – £399 + VAT
- Total payable : £13,167 + VAT
- Total loss: £13,167 + VAT
REVIEW COMPARISON FOR A RANGE ROVER SPORT, 3.0 V6 DIESEL
Hassle-free added options
A popular choice is to also build in a service contract, so that for a fixed monthly payment you already know that the only other cost you will have is fuel. Everything else is already covered, including tyre wear.
All you need to decide is which vehicle you want, the length of the contract and the expected mileage.
5 benefits of vehicle leasing for doctors and dentists
The key benefits of leasing for a busy doctor or dentist are:
Leasing frees-up capital – the number one benefit of leasing is that you get a brand new car, without hefty up-front costs, freeing up cash to invest elsewhere in your business. The deposit requirement is typically three to six months of the lease, but after that it’s monthly payments all the way, helping you spread your costs through the year.
Leasing is low risk – another key benefit of leasing is that you are able to eliminate the risks on vehicle depreciation and maintenance. At the end of the contract, simply hand back the car without worrying about how much it might be worth.
With leasing, you choose! With leasing you choose, from the widest choice of a cars and light commercial vehicles available to meet your business needs. Opt from a Smart car to a Lamborghini, and everything else in between.
There is less admin – buying, maintenance and selling issues are taken care of by the leasing company, saving you time and money, which ultimately allows you to focus your attention on your core business.
Tax relief can be claimed – the monthly leasing payments can be offset against your taxable profits, with just an adjustment for any personal use of the vehicle.
Specialist leasing options available
Lion Vehicle Leasing have a team dedicated to dealing with the special requirements of medical and dental professionals.
WHICH CAR WOULD YOU CHOOSE? DOWNLOAD SAMPLE OFFERS.
Call today to find out competitive costs and special offers available.