Mercedes is a popular brand for company car drivers which is why we think it’s important that you understand the benefits of leasing as a funding method for your fleet vehicles.

There are a lot of reasons that leasing is a great choice for your next company vehicle and we’ve rounded up our top 10 for you to show just why leasing could be the best choice for you.

Top 10 Reasons to Lease Your Business Vehicles

1. Brand New Vehicles Every Few Years

Every one of our cars is a brand new vehicle, which means there’s no existing wear so lower maintenance costs, it comes with the manufacturer’s warranty and won’t need an MOT for the first three years of the agreement. Additionally, because they’re brand new not only will you save money on the maintenance costs the vehicles will come with the latest in design, safety and convenience features.

Lease contracts typically last two to four years so you’ll be able to regularly update your fleet vehicles every few years. This will mean lower overall vehicle maintenance spending, keeping up with the latest in fuel economy, safety and convenience features and better driver satisfaction with their vehicle.

2. Customisable Lease Terms

On all of our lease agreements you will be able to choose the contract terms that best suit your needs for that particular vehicle. This is a major benefit for businesses where different members of the team have different requirements or benefit packages and a uniform approach would not work.

As well as the vehicle itself, including the trim level, any additional extras, colour and much more you’ll be able to select the best lease length, mileage allowance, and whether you include a maintenance package for each vehicle in your leased fleet.

3. Optional Maintenance Packages

On all our agreements we can also provide you with a quote for adding a maintenance package, which is essentially an additional monthly payment that will cover you for most general maintenance, scheduled vehicle services and MOTs that will be required for the longer leases. Many businesses find that taking out a maintenance agreement saves them time and money in the long run.

4. Low Fixed Monthly Costs

You will agree to a set monthly cost for each lease agreement, which is based on the vehicle and contract terms you choose. This will be a fixed price for the duration of your contract provided none of the details change.

As you are not paying for the purchase price of the vehicle you will find leasing a much cheaper way to put your drivers in new Mercedes than if you were on a BCP agreement.

If you want to reduce the monthly rentals you may find it beneficial to pay a larger initial payment, as the total lease cost remains the same meaning the following payments are lower. However, this is not necessary and your initial rental can be the same amount as the regular monthly payments.

5. Improved Cashflow

As there’s no large payment needed for a lease agreement you will not have to budget for the removal of a large chunk of money from the cashflow. This leaves you with more money to invest in other areas of the business instead.

Additionally, if you opt for a maintenance package then you shouldn’t be stung by any unexpected garage bills.

6. Offset the Cost Against Tax

If your business is a limited company then you can offset the monthly rental cost against the end of year corporation tax.

Sole traders and partnerships will also be able to offset the cost against their annual taxation, though it will be done in a slightly different way.

The exact amount you can offset will depend on the CO2 emissions of the vehicle. For cars below 110 g/km you can claim back 100% of the rental costs, and for those over the amount you can claim 85% For any company van you’ll be able to offset 100% of the

7. Reclaim the VAT

If you are leasing a vehicle and it is used for business purposes at all then you will be able to claim back some of the VAT that you are paying on it.

For cars that are only used for business travel then you’ll be able to claim back 100% of the VAT you pay while those company cars which are used for personal trips as well you can get 50% back.

8. No Depreciating Assets on Your Books

With leasing you will not own the vehicle and are instead paying a monthly fee for the use of it, this means that you will not have it listed on your company’s books as an asset.

Vehicles can be a cumbersome asset as they will always depreciate in value once they are first purchased and then over time as they age. With leasing you won’t have this worry at all.

9. Includes Road Tax

All lease agreements include the road tax as part of the cost as the funder is the legal owner and keeper of the car so they are responsible for taxation. This is one less admin task for your fleet management team to complete and saves you money on having to pay the tax yourself.

One thing to be aware of with this is that the funder will usually only tax the vehicle at the price it is initially registered at and if there is an increase in the cost of tax, which there is for most petrol and diesel models, then you will be invoiced for the difference between the original and new tax cost.

10. Easy End of Lease Process

When a vehicle reaches the end of its contract the process is simple and straightforward. You just arrange for it to be collected from a convenient location and the funder will arrange an inspection of the vehicle’s condition and collection from you. You’ll then get a copy of the collection report and be advised if there are any additional charges.