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Thursday, July 17, 2014

Important Considerations and Features For Students Leasing a Business Car

BMW i3 Side On Closed Doors Car Leasing Made S...
 (Photo credit: Carleasingmadesimpletm)
Hiring a car for business purposes offers some notable benefits, though the overall competitiveness of the arrangement is dependent upon more than these benefits alone since there are a number of important features that business owners need to understand and look out for when leasing a car.

Why Lease Rather Than Buy?

For business owners, leasing has long been more advantageous than buying because most car leasing expenses are tax deductible, there’s minimal financial outlay involved, road taxes are usually included, and leasing rates are usually much lower than repayments.

There are, however, a few drawbacks to car leasing contracts including the capped mileage limit most car leasing agencies apply to their leasing contracts and the fact that the business won’t have accumulated an asset by the end of the leasing contract.

At the end of the day, leasing is a better option for business owners, though they’re advised to confer with their accountant to ensure leasing will prove more advantageous in the long run than buying a business car outright.

Which Car to Lease?

Business owners shouldn’t get carried away when leasing a car just because they’re presented with the opportunity to get about in a car they couldn’t ordinarily afford but rather select a vehicle that’s suited to their business needs, though having said that, in business circles it’s important to put one’s best foot forward and getting about in a nice car conveys the impression of professionalism and prosperity.

However, efficiency should be a high priority, and not only because of the savings afforded to businesses with regard to fuel consumption, but also because higher emission vehicles are hit with rising taxes as was announced in the last budget.

“By choosing more efficient vehicles, the tax savings and environmental benefits to the business will be considerable,” says Matt Dyer, LeasePlan’s commercial director.

Important Car Leasing Contract Features

Leasing a business car is actually very straightforward but it isn’t something to should rush into because there’s quite a lot to take into consideration.

Once you’ve decided upon a make and model that’s most suitable for your business needs you can start sourcing car leasing agencies to shortlist by comparing the deals they have to offer.

The length of time you wish to lease a car is an important consideration because you’ll be entering into a binding contract and you need to lease a car for the length of time you deem suitable for your business needs.

Most car leasing agencies offer contracts of 12, 24, 36, or 48 months, so make sure you can lease a car for the length of time that best fits in with your business plans.

Mileage caps are another important contractual feature that you’ll need to take into consideration when sourcing a suitable leasing contract.

Most agencies offer similar mileage caps, though if you feel as though you’ll exceed the mileage cap – when you exceed the mileage cap you’ll pay a fixed fee per mile – you need to source a leasing agency that provides higher mileage contracts; however, you also need to bear in mind that higher mileage contracts equate to higher monthly payments.

Additionally, discuss the possibility of extending the mileage cap if needed as some leasing agencies will allow you to increase the mileage if it appears as though you’ll need to exceed it, though be sure to discuss this prior, not after, entering into a business car leasing contract.

Vehicle options, for instance Satnav and digital air conditioning, are something else to look into further and you should also discuss your branding options if you plan on emblazoning your leased car with a car body wrap – car wraps are an excellent marketing method that garners plenty of exposure – to increase awareness of your business brand when you get about town.

Gap insurance is another important contractual consideration to check before signing on the dotted line, as are acquisition and disposition fees, and don’t forget to enquire about purchase options and the fees applied in case you decide to buy.

Car leasing is, generally speaking, a much better option than buying a car for business purposes but you need to know what to look for in a business car leasing contract.

About the Author:

Ruby Shultz is a writer for a company with a car search facility that is one of the most advanced in the market. Leasing Options is a specialist catering to those looking for a reliable personal car lease.

Tuesday, July 1, 2014

How Some Students are Paying Less for Car Insurance

Like it or not, young people usually end up paying more for coverage than more mature drivers. Even so, there are a few perfectly acceptable strategies that young adults can employ to bring down their premiumsespecially if they are students. But before we get into the discounts that are available to students, it’s worth taking a look at how insurers calculate risk. Generally, they take the following factors into account:

·         Type of car
·         Marital status
·         Occupation
·         Driving record
·         Place of residence
·         Credit rating
·         Gender
·         Age

The latter is the most obvious strike against students. Statistics show that young (i.e. inexperienced) drivers are much more likely to be involved in an accident than their more mature counterparts. However, many of the other variables on the list apply as well. For example, students haven’t spent as much time generating a paper trail in their adult lives, and that means that they aren’t going to have, for example, as clear or strong a credit rating or driving record. Likewise, students have yet to establish an occupation or—in most cases—tie the knot.

So why do factors like this matter? For starters, the variables listed above can tell us a lot about how (and how much) you’re going to drive your car. A person who owns a sports car probably bought that car—at least in part—because they intend to do some fast driving. Faster driving equals higher risk, plain and simple. In this case, it’s better to own up to the situation and purchase performance car insurance, which is tailor-made for vehicles like this.

Likewise, policyholders that are married and have children are statistically inclined to drive more carefully. Those that work far from home are going to spend more time on the road on their daily commute; and the more time you spend in traffic, the more likely you are to be involved in an accident—regardless of how careful you are. Got a good credit score? That probably means that you err on the side of responsibility. In such a way, insurers can paint a portrait of us in probabilities without ever having met us.

Of course, it would be wonderful if ever insurer were able to get to know their customers on a personal level. But as that’s not even a remote possibility, we’ll have to settle for the statistical equivalent. 

How Can Students Lower their Premiums?

Fortunately, it’s not all doom and gloom for university students. In fact, there are several ways that a young person who is focused on studying can bring down their premiums. Here are a few ideas to get you started:

ü Ask for a good student discount.

While students may not have much in the way of a history to demonstrate their responsibility, they do have a constantly updated academic record that hints at the kind of person they are. Insurers know that students who get good grades are less likely to take unnecessary risks. Again, we’re talking about statistical likelihoods here. It’s nothing personal, but better grades mean you’re probably a better driver.

ü Get added to your parent’s policy.

This is only an option if you are not the primary driver for the vehicle in question. Being added to your parent’s policy can result in a discount, because the assumption is that the primary driver will spend more time behind wheel. But be careful with this one. The act of fronting, or naming a lower-risk person as the primary driver when this is not the case, is illegal. If found out, it can void the existing policy, put the driver at risk for driving without coverage and lead to major points on the license.  It’s not worth the risk.

ü Look into telematics.

Some insurers will equip your car with a sort of ‘black box’ that measures the way you drive and reports back to headquarters. When there’s not much data about your personal habits for insurers to review, this is a practical way to prove what kind of driver you are. Over time, your premiums will adjust based on driving habits (propensity for speeding, etc.) as well as for how much time you spend driving in general.


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