As an employee who as part of their job description needs to travel regularly, your employer may offer you the option of leasing a car instead of using your own personal car. Having a leased car is usually offered if it is financially viable to do so. If you spend the majority of your time travelling between locations and spend over 60% of your time doing this, then you could save a lot of money by having a lease car instead. If you are an NHS employee, then the savings and benefits are even greater and you can get tax relief by opting to lease a car too.
What is the NHS car lease scheme
The NHS car lease was introduced as a way for employers to help with the costs of travelling for business use. If you want, you can also pay a fee to use the car for personal use as well. By using it for both business and pleasure, you will have the option to choose any car you want. Your employer will usually let you choose your own car as long as it is not a soft top.
Cost of having an National Health Service (NHS) car on lease
The cost of the car will depend on what car you choose; if you go for a small one, then you will pay less. The employer will pay for the business use of the car like mileage and all other costs will be deducted and paid by the employee. Having an car lease from the NHS is much cheaper than using your own car and claiming back the costs afterwards.
There are currently nine companies that offer cars to the NHS for leasing and they are all very competitive. It is worth checking a few different cars before going with your first car choice and quote. If you have a budget, then the car lease companies can give you a list of the cars that you will be able to afford; it's always good to have a budget so that you don't overspend.
Benefits of having a leased car
As part of your contract, road tax, MOT, service and repairs and many other things such as tyres are included in the price you pay. You will have a 24 hour help desk that will be available to you for any problems or queries you may have with the car.
The only disadvantages of having a NHS car lease is the majority of contracts are for three years. You may negotiate for less than this but in general, NHS car leasing is for at least 2 years. If you decide to leave before your contract finishes, you will have to pay a penalty which can be quite hefty.
Many people also have problems at the end of the contract when it comes to wear and tear as you may need to cover the cost of this and also if you are involved in an accident that was your fault, you will still need to pay an excess.
Should you go for it?
There are many people who have been leasing cars for many years as they find that it is cheaper to do so, for the reasons mentioned above and you can also use it for personal purposes too and after three years you can pay the outstanding amount to purchase the car or you can just get a brand new one. At the end of the day, you should get a leased car from the NHS only if it makes sense and cuts down on the overall cost of using your own car or other mode of transport.