Many forward thinking companies are turning to leasing vehicles instead of owning company vehicles as a way of providing their representatives with the cars they need to fulfil their jobs but is it a cost effective way to finance vehicles if you are self employed and therefore only want one car or van?

It is without doubt an excellent way of getting to drive a brand-new car with the latest technology and safety features without the hefty price tag. The reliability of the vehicle is usually guaranteed, and maintenance and servicing costs can be covered for an additional sum in the leasing finance deal. Fixed monthly payments mean that the running costs are known in advance and so the only cost is that of the fuel.

At the end of the leasing contract the car is simply returned to the leasing company and either another car is arranged, or you can make your own arrangements for an alternative vehicle. In effect all you will have paid for is the depreciation rather than the full cost of the vehicle and you will not have the hassle of selling the vehicle on.

It is however crucial that you take care of the vehicle you are leasing as any damage that you incur will usually have to be rectified at a cost to yourself.