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Tracy Spence
Tracy Spence
Tracy Spence's Blog

Why Prestige Car Leasing Can Save Your Business Money

There’s something a little special about a prestige car – that’s why they are called prestige!  These are the types of car that have a certain association with them and say something positive about the driver or company owning them. However, the biggest issue with this type of car can be that they come at a prestige price and rate of depreciation. So can prestige car leasing help deal with this problem?

The depreciation problem

The biggest problem with buying any new car is depreciation – this is the value that the vehicle loses as soon as you drive it off the forecourt.  The value keeps declining the longer you have the vehicle. Within three years, a vehicle, on average, will retain around 40% of the price it had when it was new, assuming it does a standard 10,000 miles a year.  This means it has lost a huge 60% of its value, which can be greater still if you do a higher mileage. Added to that is the fact that prestige cars cost more so depreciation is greater in real terms.

Can car leasing help?

If you want a prestige vehicle for your business, asset finance solutions such as car leasing may be the perfect solution. With car leasing the business doesn’t own the vehicle but pays for its use through a schedule of rentals. Rentals are paid over an agreed period to meet cashflow preferences. When the lease ends, there are options as to what happens to the car – it may be handed back, it may be leased for an extended period or it may be sold to a 3rd party.

Therefore, car leasing can be the ideal way to get the prestige vehicle you want for your company without the associated upfront cost of purchase and the hit of depreciation. Lease rentals can also be offset against your taxable profit.



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