The difference between personal and business car leasing is pretty simple to work out – it’s all about how you use the car. With personal leasing deals you can use your car however you like (provided you stay within your agreed mileage), but with business contract hire, it’s a bit more complicated.

How does leasing a car under your business work?

So once you’ve paid it off, you own the vehicle outright and it becomes an asset for your business. When you lease, you don’t ever actually own the vehicle. You simply make payments through a period, usually of about three years. Then you turn the car in at the end of that period or have the option to purchase it.

Should I lease a car in my business name?

If you are in the market for a new car that you’ll be using a significant amount of the time for work, you should seriously consider leasing it in your company name. It will save you from headaches later if you are involved in an accident.

Can you lease a car for personal use?

Please note that if the car is for business and personal use, the tax benefits only apply to the business use proportion of the expenses. If you decide to go down the Personal Car Leasing route, the first thing to remember is that you will be making the payments out of taxed income and you will not be able to claim any of the money back.

How long does it take to lease a car for a business?

Much like personal contract hire, business contract hire you will pay for the use of the vehicle either 24, 36, or 48 months. At the end of your contract you simply return the vehicle to the finance company.

What’s the difference between business leasing and personal leasing?

If you’re leasing a car, you’ll get a choice between business and personal leasing. They might sound similar, but there are important differences – including the price. Here’s the full low-down on the differences. Check out our other leasing guides for more information: Should you buy or lease your car? What are the extra costs of car leasing?

Is the lease of a car a business expense?

The business use of your car — owned or leased — is a deductible business expense. Whether a personal or business lease, you get a deduction for hauling supplies from your office to a client …