What are the benefits of vehicle leasing for SMEs?
Will Voisey, General Sales Manager at Synergy Car Leasing, part of the Newable Group, answers some key questions from SMEs on the benefits and considerations of vehicle leasing for small and medium sized businesses.
Synergy Car Leasing is one of the UK’s leading vehicle leasing providers offering cars and vans to SMEs, private individuals as well as businesses of all sizes. Newable acquired the business in early 2020 and now offers vehicle leasing agreements as part of the wider Newable lending portfolio.
Will Voisey, General Sales Manager at Synergy Car Leasing, part of the Newable Group, answers some key questions from SMEs on the benefits and considerations of vehicle leasing for small and medium-sized businesses.
Supplying vehicles nationwide, Synergy Car Leasing offers best-in-class customer experience having achieved the Feefo Platinum Trusted Service Award for four consecutive years. Synergy also offers dedicated Account Management as well as an easy Online Application Process, all backed by its Best Price Guarantee.
What are the advantages of vehicle leasing for SMEs?
Vehicle leasing offers a secure and convenient online experience to order a brand-new car or van for your business, through our website, email, and telephone. Synergy’s website offers a range of in-stock vehicles for quick delivery; and the ability to factory order a car or van to personalise your vehicle and add factory-fitted options.
You can choose the terms of your leasing contract, such as the initial rental, term period usually 2, 3, or 4 years, and annual mileage allowance.
Our friendly and professional team is on hand to offer help and advice 7 days a week, with our easy online application process along with e-signature documentation and administration, and free mainland UK delivery to your office.
Leasing is a non-ownership agreement, which means that it often offers great value for money as you are not paying to own the vehicle. At the end of the lease, the car or van is simply handed back and collected, and you can step into your next lease vehicle.
Car and van leasing also offers peace of mind, as you know your employees are driving new, safe vehicles, which can also be looked after with our optional maintenance and servicing plans offering a hassle-free experience.
What are the benefits of a business lease versus a personal lease?
The decision to take out either a business or personal lease will depend on individual circumstances. In most cases, businesses can claim back 50% of the VAT on the cost of the monthly rentals on cars, but, where applicable, drivers can become liable to pay benefit-in-kind tax where there is private use of the vehicle.
Electric vehicles, however, are extremely popular with businesses. This is because company car drivers benefit from low benefit-in-kind tax, currently 2% rising to 5% by 2027/2028, but still offering great value. Electric vehicles can also help to boost your business’ sustainability and ESG credentials.
Synergy’s team can offer information in this area, including P11D information on the car and tax liability information, which we encourage our clients to provide to their accountant ensuring they can make the right decision for themselves and their business.
The alternative to a business lease (commonly known as Business Contract Hire or BCH), is a personal lease (Personal Contract Hire – PCH) as a private individual. It’s common for our SME clients to offer their directors, managers, and staff a car allowance for them to take a personal lease agreement (PCH), so no benefit-in-kind tax is due in this case. This can, and usually, forms part of a safe company vehicle scheme.
Leased vans are popular on business contract hire (BCH) agreements. If you are a sole trader, your agreement also benefits from consumer regulations giving you extra protection. For van leasing, 100% of the VAT can be reclaimed, and our team can also help with fitting out the van. Decals are also permitted on a leased van, we just ask that they are removed prior to collection at the end of the contract.
Do you offer leases on electric cars and vans?
Yes, we’re seeing more and more of our clients take advantage of new green technology and opt for a fully electric or hybrid vehicle.
Many of our SME owner-managers, directors, and company car drivers, or those businesses that offer a salary sacrifice scheme, are reducing their tax liability by leasing an electric vehicle and installing charging points at both their office and home addresses.
With a wide and growing range of electric vehicles now available, mileage range improvements and the proliferation of charging points, as well as low taxation, electric vehicles offer a financial and environmental incentive to many SMEs and are also seen as a great company perk.
Synergy can also help with the installation of both domestic and commercial charging points, with our partnership with one of the UK’s leading EV charging units’ suppliers and installers.
How do I maintain my lease car or van?
All lease vehicles must be serviced and maintained to the manufacturer’s guidelines. For both business and personal lease agreements, maintenance and service plans are available. These ensure that all routine maintenance and servicing are included in one simple monthly cost. Roadside assistance is also included. There is one number to call, or use of an online booking portal, to book the vehicle into a local approved repairer. This is a hassle-free experience for businesses and company car and van drivers to ensure their vehicle remains on the road and safely maintained. It also helps to avoid any unexpected costs and allows drivers to book their company vehicle into an approved garage nearer to their home or work location.
For a no-obligation quotation or a free review of your current fleet or leasing arrangement, or to simply find out more visit www.synergycarleasing.co.uk. Call Synergy’s friendly team on 0330 134 5998, seven days a week – Monday to Friday 7 am to 9 pm, and Saturday to Sunday 10 am – 8 pm.
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