Leasing cars...

A question about : Leasing cars...

Hi, Am I right in thinking that if a company leases a car for a few years, then the company are responsible for insurance, road fund licence and paying for service and repairs? I'm trying to evaluate the pros and cons of leasing cars - I assume that as a company wouldn't own a car then there would be no depreciation charge

Best answers:

• All depends on the term of the lease as to what's thrown in. One things for certain you're paying for the depreciation.
• So there are a few options really, depends on the entire 'package' of the lease contract.
  You can get maintenance included (which covers for chips, repairs, MOt's etc etc)
  I think sometimes the RFL is included, but again - depends on the contract
  Insurance always has to be fully comp
  Driver responsible for fair wear and tear, so make sure the car is looked after plus other bits, effectively the car isn't yours if you go for a contract hire agreement.
  Sometimes it makes sense for some industries to lease their cars, like estate agents who always need a posh motor to show off to their clients!
• The leasing price covers the depreciation on the car and some profit for the lease company.
  If it didnt then they wont be leasing cars for long if they dont cover their costs. Although generally their costs are lower, They get better discounts on the cars than any private buyer will get so a good starting point.
• Could be expensive if something happened to a couple of the cars though. I presume the company is big enough to pay the full value of the cars if anything happened?
• If you or your company have anything but top line insurance cover on your car/fleet you will have signed an agreement guaranteeing the condition at end of lease with a fat penalty added if it is not to their representation of good condition.