Nibletz Staff
When it comes to choosing a car for your business, there are a lot of options available to you. No matter what your budget or personal situation, there’s always a way to get the car you need. Here we’ll look at the difference between the top three options available – leasing, buying and PCP.
Leasing Vs buying a car – what you need to know
Leasing has become a very popular option for businesses. The majority of the time, leasing is a much cheaper alternative to buying a car outright. While at the end of the lease you need to give the car back and you’re left in the same predicament, it does save you the hassle of worrying about depreciation. New cars can depreciate in value quite considerably over time. So, when the time comes to sell it may not be worth as much as you think.
Then there’s the obvious advantage with leasing that you don’t need a lump sum to get the car you need. If you’re a start-up business, this gives you the opportunity to get your company up and running at the cheapest possible cost. Companies such as Car4Leasing, offer great models at low affordable monthly prices.
Another benefit of leasing is that you can get a much better model than you’d be able to buy. In business, image is everything so you can take advantage of the manageable monthly leasing costs to hire a more executive looking model.
What about PCP?
PCP stands for Personal Contract Purchase and it involves taking a car out using your personal account rather than business. This again is a popular option as it frees up more finance for the business, while helping to keep the monthly installments low and manageable. These types of arrangements also tend to be more flexible.
The main difference between PCP and leasing is that at the end of the agreement, you have the option to buy the car. Usually you will have paid around a third of the total cost off once the agreement ends. So, you can choose to provide a balloon sum and keep the car, or you can hand it back. There’s also a third option available and that’s to trade the car for another model and restart the lease.
Overall, it’s important to do your research so you can ensure you are choosing the right option for your business. With so many options available, getting the car you want and need is simple.
