Pellicano Articles
For many people, one of the joys of going on holiday is taking charge of a brand new, state-of-the-art hire car and enjoying a week or two of hassle-free, pleasurable driving. One disappointment of returning home, as unconscious as it may be, is having to go back to using one’s older, less comfortable car. Smart car users, however, have discovered a cost-effective way of bringing that luxurious, care-free hire car experience into their everyday lives: contract hire car lease.
Just like hiring a car, contract hire enables the driver to have immediate access to one of the latest vehicles on the market, with no worries about having to pay the road fund licence, and the backing of a full manufacturer’s warranty. Contract hire, however, actually improves on standard car hire in the following ways. Firstly, the contract hire customer is able to choose any make, model and colour of vehicle, as if he or she were purchasing a car direct from the manufacturer. Secondly, the contract hire car lease customer is granted complete use of this same vehicle for the entire length of the contract period (usually three years). Thirdly, the monthly rates for contract hire are enormously favourable, since they are, for the most part, derived from the value of the car’s depreciation over the contract hire period, rather than on its total sale price when new.
One reason why vehicle leasing is so popular with many businesses, is that there is so much scope for accounting and taxation incentives. These benefits vary according to the type of lease chosen, with some types of lease having more than one of these benefits. One of the most widely recognised incentives of vehicle leasing, is a business’s ability to reclaim at least 50% of the VAT due on each monthly lease settlement. This is a benefit applicable for VAT-registered businesses, which take out either a contract hire or finance lease agreement.
A second incentive is a business’s power to offset the leasing costs against corporation tax. For van leasing under a contract hire agreement, 100% of the monthly lease payment can be offset against corporation tax. For cars under the same contract hire agreement, the amount may be smaller, depending on the emissions from the car. For those organizations that prefer to keep their lease payments off the balance sheet (in order, for example, to reduce their official outgoings so that funds can be allocated to another area of the business), undertaking a contract hire agreement will provide the solution they seek. On the other hand, should a business feel it could profit from including lease payments as an asset on its balance sheet (so as to attract finance, for example), a finance lease will be the resolution.
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Tags: car lease
Posted in Cars and Trucks · September 4th, 2010 · Comments (0)
When purchasing new cars do you look for offers or not? I do and I am sure you do too, the first thing people look at when they are looking to buy a car is that if the car has any offers or not. If you are looking to buy luxurious cars such as Mercedes cars or BMW cars you would like to know if the car has any offers as you will be paying a lot of money to buy the car.
First thing you look at is if they have 0% finance offer for the car you are interested in buying. Always search online because you will find a lot of information and you will be surprised by the offers you find. If your local car dealers do not have low finance offers then you might be able to find low finance offers from dealers in different towns.
For wealthy people this post is not relevant as they can afford to pay the whole amount at once when buying a car, but for people who are looking to buy in finance they do look for offers. I bought BMW 1 series in finance 2 years ago. First I went down to the local car dealer to check out the cars and offers but no offer on the car I was interested in, then I went back on and started searching on the Internet. Yes it did take me few days to find out exactly what I was looking for but eventually I did find the best offer.
The offer situation will be completely different when buying used cars. People have a certain budget to buy the car and because of this some used cars do not have any offers. Used cars also have finance offers but with high APR so that might be not be the right thing to do when buying used cars.
Tags: bmw, cars, mercedes, offers
Posted in Cars and Trucks · September 2nd, 2010 · Comments (0)