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What is the difference between Personal Leasing and Business Leasing?
A personal lease and business leasing are the two main types of vehicle leasing options we currently offer. Whether you’re looking for a company car lease for your staff, or a personal lease for yourself, there are plenty of vehicle options us.
With a leased car, there’s no need to consider depreciation, and you get a brand-new car for an affordable monthly fee tailored to suit you. Our personal lease is a type of car finance where you lease a car for a specific length of time, and then return it when the contract comes to an end. You’ll pay a deposit at the start of the agreement and work out a payment schedule with us. Reducing your monthly payments can be achieved by placing a greater initial deposit.
Our business vehicle leasing works much like personal contract hire – you lease a car for a fixed period of time, pay fixed monthly payments to include interest and then return the vehicle at the end of the agreement. However, Business Leasing contracts are only available to registered businesses.
Why is business vehicle leasing cheaper than personal car leasing?
The main reason is the tax benefits on monthly costs. If you’re a limited company and looking for a new business car lease, you can reclaim the VAT on your lease agreement. To do this, you must use your car solely for business, which doesn’t include your commute. If you’re using your car for any heavy-duty transportation, you’ll need to ensure your car remains in good condition and sticks to the agreed terms for wear and tear.
Can I lease my personal car to my business?
No, you cannot take a Personal Lease and then in turn lease the car to your business. A personal vehicle can be a legitimate business expense you can claim on the tax return for your business up to a certain price. Technically, a privately purchased car can be leased to a small business if that small business is an entity. Your small business will need a corporation name, registration with CRO and separate income accounts in its name. BIK is a tax charge on an employee or director with a company vehicle available to them for private use.
Can I use my business lease car for personal use?
You can use it for personal use, but business car leasing can be more restrictive as it differs from Personal Leasing in terms of tax. VAT registered companies get the advantage of claiming back a percentage of VAT based on the emissions of the vehicle if it’s used primarily for business purposes. Other than that, you can use the car but if claiming relief, you’ll have to document journeys carefully to prove your car has been driven solely for personal or company purposes.
How do I get it set up and apply for Personal or Business leasing?
We make it simple to secure your lease deal, but there are some differences in how you apply for personal or business leasing. For Personal Leasing, you’ll have to provide a number of different personal documents and details, including photographic ID, proof of address, etc. To get started, simply select a vehicle and complete an application.
With Business leasing, the documents should all relate directly to your business. You’ll be asked for details for both company directors and owners and specific company details like address, company registration number and bank statements. For more information, please visit www.niftibusiness.ie/business-leasing/ where you learn more about our offers for Limited Companies, SMEs and corporate companies. Like all forms of leasing, we will require some credit checks for both business and personal lease agreements.