Derby’s Short Term Leasing Explains Leasing Differences
As more and more individuals and start-up companies turn to car leasing as a preferential method of motoring, Derby’s Short Term Leasing Director, Rhys Adams, explains the benefits of short term leasing and the key differences between long term leasing and short term leasing.
With a recent spate of media coverage surrounding short term leasing, start-up companies stand to benefit from this simple way to fund a car whilst their business grows. With the flexibility of three month car leasing deals, 6 month car leasing deals and 12 month car leasing deals, short term leasing gives companies the opportunity to change as their company’s strategy moves in line with it’s growth.
Short term contract hire for sole traders means that the entire business portion of the lease can be claimed as a business expense, whereas for incorporated companies, the lease fee will be allowed as an expense, but the lease car will be liable to company car tax.
“The main differences between long term leasing and short term leasing are as follows”, explains Rhys. “Long term leasing generally involves a car leasing deal of 24 plus months and the car leasing company will normally charge the equivalent of 3 to 6 payments in advance, followed by the number of remaining payments. Short term leasing is available in two formats generally, being fixed and flexible”.
“Flexible short term leasing can be taken for a minimum period of 84 days, requiring 28 days to terminate the contract, otherwise it will continue. With fixed short term leasing, the customer is required to take the car leasing deal for a set period, be this 6 months or 7 months as examples. The lease period cannot normally be extended or terminated early, however, fixed short term leasing deals tend to be cheaper than flexible contracts and short term can work out to be more expensive, but not in all cases”.
Rhys also points out that, as long term leasing generally requires positive filed accounts, most businesses will be considered for a short term leasing deal, again, making short term leasing ideal for start-up companies.
As well as providing short term leasing deals on many leading car brands and models, Short Term Leasing has also started to provide car and van hire across the Derby and Nottingham area, including weekend car hire. For more information on this and to find out more about the attest short term car leasing deals, visit www.short-term-leasing.co.uk.
Short Term Leasing Ltd
17 St Christopher’s Way