What can you accomplish with a leased automobile? It turns out that there are quite a few possibilities, but there are some things to keep in mind.

There are a few things that you can’t do with a leased automobile.

It’s actually no different from any other car, save for the fact that it’s on a contract and you don’t own it outright. So, while you may want to consider adding a few more items in certain situations (which we’ll get into later), know that your trustee’s new vehicle will allow you to hit the road confidently (er, automobile).

Here are some of the most frequently asked questions about leasing a vehicle:

Can a leased vehicle be driven by my company?

The answer is yes. In fact, you may do one or the other, and you’re entirely free to make your own decision. You can also set up a company vehicle lease for a regulated partnership or sole trader. the best option will be determined by your own circumstances. If you want to save money on VAT, leasing the automobile through your firm is probably the best option, but you must be VAT registered in order to claim back any VAT taxes.

Is it possible to use my leased vehicle to get a personal loan?

While you may have been able to secure a vehicle you purchased as collateral, a leased automobile cannot be used to secure a personal loan because it is not an asset that you own outright.

Is using a leased vehicle as a taxi legal?

This one is a bit of a pain. If you want to lease a car to use as a taxi, you’ll almost certainly need to locate a firm that specializes in taxi leasing. Taxi driving is both physically and mentally demanding, which leads to rapid vehicle depreciation (the rate at which a vehicle’s value decreases). As such, most financing firms will not offer it as an option.

Is it possible to use a leased vehicle as a trade-in?

Trading in a leased car before the lease is up is not an uncommon practice, but you can’t trade in a vehicle on loan with an outstanding balance. In reality, there may be costs for prematurely ending your contract.

Is it possible for someone else to drive my leased vehicle?

You may believe that only you are allowed to drive your leased automobile because you’re the one who is paying for it. In fact, you can allow someone else to drive or borrow your vehicle as long as you’ve given your explicit consent. They’ll also need their own insurance coverage. At the end of the day, your leased vehicle is still an investment, so be sure you can trust the person behind the wheel (that rules out your 18-year-old cousin who hasn’t passed their driver’s test). Our suggestion is that any third party usage has express permission from both the hirer and the driver and that they are fully comprehensively insured.