Leasing, rather than buying is a great way of “future proofing” and it is an option which works equally well for businesses and private motorists.
Simon Hill, Director, explains: “There is a lot of uncertainty in the market at the moment with no-one knowing exactly what impact Brexit will have on UK car sales.
We don’t yet know how leaving the EU will affect the euro and what that will mean for UK car imports.
By leasing their vehicles, businesses and private motorists can lock themselves into a fixed deal, so they can be confident that their motoring costs won’t increase, whatever happens post-Brexit.
Effectively it’s “future-proofing”, a bit like taking out a fixed rate mortgage.
For businesses who are VAT registered, leasing offers a big tax incentive too, as they can claim back 100 per cent VAT on their car maintenance costs. Businesses are better able to plan their budgets, and their fleet is serviced as part of their leasing contract.”
Private motorists who decide to lease their cars would also be well advised to take out a maintenance contract as part of their lease; cutting costs and saving hassle.
Simon adds: “When you buy or lease a car you know that it’s going to have to be maintained.
It’s not like purchasing an electronic device and taking out a separate policy just in case you damage it. Your car will definitely need servicing and maintaining.
By having a maintenance contract with the lease provider, the motorist doesn’t have to worry about servicing and MOTs. Total Motion, for example, has access to a good network of garages and through this we get lower labour rates and discounted car parts.”
As well as Brexit, higher prices at the fuel pumps and spiralling car insurance costs, there are other emerging factors which could also hit motorists in the pocket.
Motor manufacturers have said they want control over all data generated by new cars, but fleet operators, independent garages and insurance companies have all criticised the move as anti-competitive.
Simon comments: “This issue is currently being debated in the EU but should manufacturers get their way, it could mean higher servicing costs for motorists.
It’s yet another reason why private motorists and businesses would be better off leasing and leaving maintenance contracts to their lease provider as we have the network and buying power to support them.”
To find out how Total Motion can look after all your fleet management needs, call our award-winning customer service team on 0116 2511122.