What is the best small luxury SUV to lease in 2019? Can my business lease a prestige car? Should I buy or lease it?
When it comes to those businesses with more than £500 per month to spend on their new car, there is a healthy list of smaller 4x4s to review. As a credit broker, not a lender or dealership, we operate with every make and model. Whether you want a Ford or Ferrari, it is about us helping you to select the correct finance product and the correct vehicle which meets your needs and requirements.
Within the smaller crossover segment you have a growing list of options – Audi Q3, BMW X2, Mercedes GLA, Jaguar E-Pace, Range Rover Evqoue and the upcoming pure electric model which is the Tesla Model Y.
Of course you need to find a vehicle which suits your driving behaviours and lifestyle i.e. petrol/diesel/alternative fuel, which is probably the most crucial starting point in the consideration. While Porsche and Range Rover certainly have the badge status and presence, the German powerhouses are appealing to the high-end market with their more cost-effective but equally desirable options. While some of this will come down to the lease cost and availability, whichever vehicle your business goes for we are sure you won’t be disappointed. Our central London based business customer was far more certain with what they wanted; this beautiful Porsche Macan which was sat at a dealership with Porsche East London and they knew it was for them straight away!
So my business knows the new car it wants – which finance method is best for us? To be clear, there is no “best” way to procure a vehicle; which finance method you should elect for will very much depend on your circumstances. For a business, the main distinction to make is whether or not you want a usership or ownership style product. The growth of leasing, by which we mean contract hire, has seen many businesses go down the usership route. This is for those businesses who essentially want to operate a vehicle for a fixed period of time (commonly 2-4 years) based on a set mileage (between 5,000 and 50,000) and with the ability to include all servicing, tyres and maintenance (funder-maintained). Notwithstanding the corporate tax benefits, the product offers a more distanced and hassle free arrangement, where the risks and rewards are pushed to the finance company rather than the customer. In effect, a business will pay an amount per month for the vehicle and at the end of the contact will return it.
Contract hire is the most certain of all finance products but this doesn’t mean it is the most suitable.
Some businesses need flexibility and others want to benefit from any potential equity which might arise with the vehicle. Contract hire does not allow this; it is not a flexible product nor can the business look to buy the vehicle/sell it to a 3rd party for a profit. In some instances, purchase products like finance lease and hire purchase might be undertaken by the business looking to undertake this exercise.
Businesses do need to speak to their accountants before undertaking any financial products as rental products (contact hire and finance lease) are treated differently to purchase products (cash/hire purchase).
The main focus of buying a car, is that the business will ultimately want to own the vehicle or, at the very least, be able to sell it to a 3rd party in order to benefit from any potential equity which might arise. Some vehicles, the Porsche Macan, have strong residual values and are often popular in the prestige used-car market.
Either during, or at the end of the contract, the business may want to sell the vehicle to benefit from a car’s popularity.
Where purchase products can also benefit a business is for those vehicle which might incur heavy use. With contract hire the vehicle has to be returned and, at this point, is inspected by a collection agent from the finance company. The business pays for any damage above fair wear and tear which, for heavy-use, could lead to a bill at the end of the lease.
With purchase products, the vehicle’s value is influenced by the condition and the business may consider this is a better position than the inspection under a lease.
So having made a decision to buy/lease the new car – how do we proceed? Once the customer accepts the funding style and a price, they are able to complete a proposal form with the broker or finance company. All forms of finance involve some form of credit checks and this can be run against both the business and its directors.
Make sure you review your company accounts before making an application; your business should ideally have at least 2 years’ of accounts posted and must show a profitable position.
While we will discuss credit and proposal forms in more depth, the key thing for a business to note is that it will not be automatically be accepted. We would always recommend the director (or directors) monitor their individual credit profile too. Should there be any individual issues or defaults, this will be highlighted in the searches. If you have any issues, just let the CarLease UK team know.
In terms of the car shown here, the Porsche MACAN ESTATE S 5door PDK (Petrol/Auto), this is based on the following configuration:
· Porsche metallic – Volcano Grey
· Partial leather with leather interior pack – Black
· Accent trims with silver coloured finish
· 21″ 911 Turbo design alloy wheels
· 14 way electric front seats with memory package – Macan
· 75 litre fuel tank
· Aluminium roof rails in black
· Auto dimming interior + exterior mirrors
· Black sports tailpipes
· BOSE sound system
· Heated front seats
· Heated steering wheel
· Heated windscreen
· High gloss black side window trims
· LED main headlights in black including Porsche Dynamic Light System plus (PDLS Plus)
· Bodycare – Dealer Fit
· Panoramic roof system
· Porsche Active Suspension Management (PASM)
· Porsche crest embossed in front and rear headrests
· Power steering plus
· Privacy glass
· Reversing camera with ParkAssist
· Side skirts in sport design
· Sideblades in body colour
· Sport exterior mirrors
· Wheel centres with full colour Porsche crest
As standard the car includes hi-fi sound system with 10 speakers, heat insulating glass, floor mats, multifunction sports steering wheel, 18” alloys, from comfort seats with 8-way electric adjustment, LED main headlights with 4 point LED daytime running lights, cruise control, plane departure warning system, heated rear windscreen with automatic switch off, 6-piston aluminium Monobloc fixed brake calipers, ASR, ADB, auto hold function, hill hold control, multi-collision control, PTM, PSM, mobile telephone preparation, start/stop system, power tailgate, instrument cluster with high-resolution 4.8% screen, navigation module, connect plus with Apple CarPlay, DAB radio, two twin-tube exhaust pipes, welcome home function, climate control, front light module with LED position lights, 4-way adjustable head restraints, 40/20 split folding seats, trailer stability, central locking, immobiliser and alarm system. In terms of additional factory options, the list is somewhat endless see above!)
On the technical-side company car and business users can note the P11d at £49,382.00 and CO2 at 204g/km. The 2995CC 7 speed auto engine delivers 31.7 combined MPG (EC), 23.9 (WLTP), 354ps and 0-62 times of 5.3 seconds.
So would the Porsche Macan be your select leasing option? Or would one of the others be your choice?
Find the best lease deals online for the Porsche Macan right here @CarLease UK – or – check out more lease car reviews below.
