Upgrading Your Business Lease Car: When and How It Works for Drivers 

Upgrading Your Business Lease Car: When and How It Works for Drivers 

A business leasing vehicle is leased by a business and brings a number of benefits compared to purchasing a vehicle. It means that all motoring costs are in one place and are therefore easier to budget for. This also means that the business doesn’t have a depreciating asset on its books and can manage cash flow easier. Additionally, there are tax and VAT benefits to vehicle leasing for a business. But one of the major benefits to a business in car leasing, is being able to upgrade a lease car to suit the changing needs of the business. 

How business leasing works 

A business car lease is much the same as a personal car lease, in that you choose a vehicle, agree a lease period and a mileage allowance and then have exclusive use of that vehicle for the extent of the lease period. The vehicle is simply registered with the business, rather than with a personal individual. With a business car lease, of course it is expected that a vehicle will be used mainly for business purposes, but this can be mixed with personal use also. This will just impact on the amount of VAT that can be claimed back by the business.  

However, the major benefit of car leasing to a business is that a car can be changed and upgraded at the end of the lease, which means a business can manage its fleets more closely and accurately. 

The benefits of upgrading a car through business car leasing 

At the end of a car leasing agreement the business has to return the vehicle to the leasing company. There is no obligation to choose another vehicle and start another lease deal at this point, but most businesses do. This is because: 

• Matching fleet needs – A business can instantly choose a new vehicle and one that more closely matches the fleet needs of the business. These can change over time and means the business might need a new vehicle to be bigger, have more storage capacity, be more suited to short journeys, be more fuel efficient or have less CO2 emissions. Whatever your changing needs are, upgrading a vehicle through business leasing enables you to adapt to those needs easily.  

• No long term commitment – The business is not tied into a long term commitment with car leasing, so there is never a long period where it is using a vehicle that is badly suited or inefficient.  

• Latest technology – Being able to frequently upgrade vehicles means the business is always benefitting from new technology. This means it is always taking the best possible advantage of fuel technology, emissions technology, safety features and in-car technology features, which could be useful in analysing driver habits and reducing journey times.  

• Switch to electric – Being given the chance to frequently upgrade a vehicle means you can manage the switch to electric vehicles more easily. This is a big step for a business and has to be done at the right time. A short term lease means you can postpone the switch until the next upgrade, or you can plan towards the switch with more certainty, i.e. you know that in two years’ time, for example, you can make the switch and can work towards it on that basis.  

• Higher spec – Because car leasing is more affordable than purchasing a car, this means you can always look at a higher spec of vehicle for the money you are spending. The business should therefore always benefit from maximising the spec available to them, because pound-for-pound, it enjoys much better value for its money by being able to lease a better specification of vehicle.  

How to plan towards upgrading your vehicle 

Most businesses will plan to upgrade a vehicle when the lease term expires. A lease term is typically between 12 months and 48 months, so as the end of the lease term approaches you can speak to your leasing company, assess the options available, and check availability of vehicles. Not all vehicles will be in stock and available to drive away as soon as your previous lease ends, but planning in advance can ensure the upgrade is as seamless as possible.  

Once the business has agreed a new lease deal with the leasing company and the day has come to return the previous vehicle, the business should ensure it is clean, inspect it for damage and any excessive wear and tear that it might be charged for, and return it ready for the upgrade.  

Upgrading your lease vehicle with Pink Car Leasing 

At Pink Car Leasing we have a great range of business leasing deals and can work closely with your business to ensure it is maximising the benefits of car leasing. By upgrading a business lease vehicle the business is ensuring its fleet vehicles are adapting to the changing needs of the business and are benefitting from advances in technology. This all combines to ensure a fleet department is maximising efficiencies and reducing motoring costs. Contact Pink Car Leasing today to discuss upgrading your business lease vehicle.