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What is the Difference Between Business and Personal Car Leasing UK

When you are thinking about leasing a car, you will be given the choice between two leasing options – business and personal car leasing UK. They may sound like they are similar, but there are actually a large amount of differences between them – including how much they cost? Here is the low-down on what these differences are:

What is a Business Lease?

A business lease is a contract deal which is used for company cars. If you are a VAT registered company then you can take advantage of lease deals UK with fixed monthly payments, and the car you lease can be used for personal as well as business use.

As with a personal lease, a down payment will need to be made before the lease officially starts, and the length of the lease can range from 12 months to 5 years. The down payment needed is usually expressed as a multiple of the monthly rental – so a six plus 23-month deal means you have to put six months down upfront, and then the rest is spread over 23 months.

One benefit of a business lease is that it tends to offer you a higher mileage limit than a personal lease, as company cars tend to be used on longer motorway journeys more. The amount of mileage allowed by your lease will vary from company to company of course, and it is important to remember that if you exceed the agreed mileage then you will be charged, and you will also be charged for any repairs needed when the car is returned.

What is a Personal Lease?

Personal lease hire is very similar to business lease hire but the car will be used for predominantly personal trips, rather than business ones. You will still put down an initial payment and then pay a fixed amount for the rest of the term of the lease depending on the deal. You will also be subject to a mileage cap as well, so the same charges will be applied if you exceed them or if there is damage to the car.

Whether you have a business lease or a personal lease, the owner of your car will be the leasing company - which is something your car insurance company will need to know.

If you are looking for the best car lease deals UK then you need to talk to the team at Amber Vehicle Solutions.

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Posted on 17th December 2018 at 5:36 PM

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