5 benefits of used cars on business lease

A car is an important asset for every business owner. Are you looking for the optimal way to finance a vehicle for your company? You don't have to spend a fortune on a brand-new car. If you want to top up your fleet quickly, used models may turn out to be the best solution. Read the article to discover the 5 benefits offered by used cars on a business lease!

How does a business lease work?

It's an agreement that you, as a business owner, conclude with a leasing company. Under it, you can use a vehicle for a set period in exchange for a down payment and periodic payments. At the end of the agreement at Car&More, you have the option to buy out the car or swap it for another model. The terms may, however, differ depending on the company you partner with. This way you can finance both new vehicles and used cars, on a business lease, both options are more cost-effective. Find out why!

Can you lease a used car?

Yes, leasing used cars is possible. What's more, it often turns out to be more advantageous than financing new cars. What does it look like in practice? When you use a trusted leasing platform such as Car&More, you have the guarantee that all the vehicles on offer come from authorised dealers and have undergone a thorough technical inspection. Thanks to this, you can enjoy the highest quality without worrying about unforeseen faults.

Discover the 5 benefits of used cars on lease!

See for yourself that used cars on a business lease are more than just savings. It's convenience, flexibility and support for your business. Keep reading to discover the 5 most important benefits!

1. Tax deductions with car leasing

One of the most important benefits that business owners derive from leasing is the ability to save on VAT. When you decide on a car privately, you have to pay the relevant tax, regardless of whether you buy it, rent it or lease it. The situation is different when you conclude a lease agreement for a passenger car for your company. The costs associated with using the vehicle are recognised as tax-deductible expenses, which opens up possibilities for tax deductions.

What does including a car lease as a tax-deductible expense look like in practice?

Article 22, section 1 of the Journal of Laws of 22 February 2024 provides the definition: "Tax-deductible expenses are costs incurred in order to generate income or to preserve a source of income."* This means that if you use the car only for company purposes, you can deduct 100% of the VAT.

2. Used cars mean a lower-priced lease for companies

The second significant benefit of leasing a second-hand vehicle is the lower total cost, which translates into a reduction in all expenses. This is especially important for smaller companies. Both SMEs and sole traders often struggle with the problem of maintaining optimal financial liquidity. A used car on lease lets you streamline your company's operations without unnecessarily straining the budget. Find out more about financing second-hand cars!

It's worth noting that second-hand cars also mean savings on the drop in value. According to research, the most frequently chosen new cars lose as much as 46.5% of their value over the first three years of use. How to avoid this? By choosing a used car, you skip the most painful period of loss.*

3. High flexibility when choosing a used car on lease

When you're building a company fleet or simply looking for a car for your sole proprietorship, you try to find a vehicle tailored to your needs. The range of cars straight from the showroom is limited to the newest examples, whereas on the second-hand market you'll find almost all the models from recent years. Combined with a wide choice of equipment packages and drivetrains, this provides the possibility of advanced personalisation. Check out the offer fromCar&More and discover the best used cars on lease!

How to choose the right car?

It all depends on your needs. If you're looking for a representative saloon, good choices will be brands such as Audi, BMW or Mercedes-Benz. For similar purposes (though in a less luxurious guise), models from Volkswagen or Skoda will do the job. At Car&More you'll also find cheap city cars (e.g. the Toyota Yaris) as well as more task-oriented, larger vehicles, e.g. theOpel Crossland.

4. Safety and a quality guarantee for cars on lease

Many drivers fear that when choosing used cars on lease, they may end up with a serious vehicle defect or one that has been overused. However, when you choose financing with a trusted platform such as Car&More, you can forget about these worries. All the cars on offer come from authorised dealers and have undergone technical inspections. In addition, each of them is covered by a 12-month warranty, which can be extended up to 36 months.

5. Convenience and time savings with a used car lease

Every business owner knows that time is money. A fast-growing company can't afford to waste the most valuable of resources. That's precisely why Car&More provides its clients with a holistic approach to leasing used company cars. In one place you get optimal financing, the necessary inspections, a warranty and other extras. For an additional fee, the car will be delivered to your company's door! You can also take advantage of optional insurance packages and seasonal tyre changes. Sign the agreement and enjoy the car of your dreams in less than 14 days.

What does settling taxes look like when concluding a car lease agreement for a company?

Leasing used cars means significant tax benefits. If, during the term of the agreement, you use the vehicle only for company purposes, you have the right to a full VAT deduction. Accordingly, you can include all the costs associated with the lease as tax-deductible expenses. This covers: the initial payment, the monthly instalments and the buyout of the vehicle at the end of the agreement.

What about the situation where cars on a business lease are also used for private purposes? In such a situation, instead of 100% VAT, the business owner has the option to deduct 50%. It's worth noting that there is no amount limit, thanks to which you can enjoy tax benefits until the end of the lease period, that is, right up to the conclusion of the agreement. As in the case of a vehicle used entirely for the company, tax-deductible expenses include both the monthly instalments and all other expenses associated with the car lease.

A business lease, is it worth it?

Yes, leasing is one of the most cost-effective financing options for business owners. As we indicated above, it means benefits thanks to which you'll organise a means of transport for your company more cheaply, more quickly and more conveniently. In addition, when you decide on leasing used cars, you'll benefit from a wider range of available vehicles, which will give you the possibility to choose a car that matches your company's needs without having to wait even several months.

* https://sip.lex.pl/akty-prawne/dzu-dziennik-ustaw/podatek-dochodowy-od-osob-fizycznych-16794311/art-22