Speaking of deduction- the user will have to use the actual cost method in order to calculate the driving deductions- so that he/she can deduct the costs of the lease payment.
All in all, businesses can use commercial car leasing as a way in which they can run company cars with low monthly payments. By that they are setting the maximum miles for the contract period.
Benefits From Commercial Car Leasing
Here are few reasons why you should consider commercial car leasing as the next move for your business.
Improves Your Cash Flow
When you need to buy cars, you are getting into a capital-intensive area – when you opt for contract hire you are able to invest your finances into your business and improve your cash flow.
One of the ideal aspects of car leasing is that you gain an extra line of credit, this means you can free up money to use in your business and provide a solution to cash flow issues. As we noted above, you don’t need to use your cash on a depreciating asset and instead can use it to expand your business.
