Enhancing your commercial fleet: is a Range Rover business lease the right choice?

Whether you’re providing company cars to corporate team members or need a new vehicle to carry caskets from your funeral parlour, Range Rover are famously spacious cars suitable for a wide range of terrains and purposes. It’s no surprise, then, that many businesses turn to this luxury brand when looking for a way to add prestige, quality, and durability to their commercial fleet.

But with high upfront costs and the risk of depreciation, buying outright isn’t always the best option. Leasing offers a smart way to access premium vehicles without the long-term commitment or financial strain.

The UK business car leasing market is growing fast, with more companies choosing to lease rather than buy. In fact, business fleets made up 75% of all lease vehicles in 2024, up from 72% in 2021. And it’s easy to see why. Leasing lets you drive a high-end vehicle for a fixed monthly cost, while avoiding the hassle of selling it later. Plus, there are tax perks and flexibility to upgrade as your business evolves.

But before you sign on the dotted line, it’s worth weighing up the pros and cons. Leasing can save you money and simplify your finances, but there are risks to consider too – like mileage limits and early termination fees.

Key points:

• Leasing a Range Rover lets you avoid large upfront costs and depreciation risks

• You can reclaim VAT and benefit from tax relief, making it a cost-effective choice

• Funding Options by Tide can help when optimisation of working capital isn’t enough, offering access to business finance up to £20 million

Why lease a Range Rover for your business?

A Range Rover can be a valuable tool to help grow your business. Unlike leasing a small car, it’s spacious enough for equipment, comfortable for long client meetings, and built to handle everything from city streets to rural roads. For many businesses, it’s the perfect blend of practicality and prestige.

Leasing makes it easier to add a Range Rover to your fleet. Instead of tying up cash in a purchase, you pay a fixed monthly fee. This predictability helps with budgeting, and you won’t have to worry about selling the car when you’re done with it. Just hand it back and upgrade to a newer model if you want to. And if you’re providing company cars for your team, a Range Rover can be a powerful perk.

Leasing a Range Rover can also boost your company’s image. A premium car signals professionalism and success to clients and partners. And for your employees, it’s a benefit that can improve morale and even help with recruitment. When your team feels valued, they’re more likely to stick around, and a luxury car is a tangible way to show you care.

Leasing vs. buying a Range Rover

Buying a Range Rover outright requires a big upfront investment – often £80,000 or more for a new model. That’s a lot of capital to part with at once, especially when considering you could use that money elsewhere in your business. But leasing spreads the cost into manageable monthly payments.

While exact figures will depend on the model and lease terms you choose, you’re likely looking at payments in the region of £1,000 to £1,500 per month – a fraction of the purchase price, and it keeps your cash flow steady.

Another financial advantage is protecting against depreciation. New cars lose value quickly, and luxury vehicles are no exception. When you lease, the leasing company takes on that risk, not you. And if you include a maintenance package, you won’t have to budget for unexpected repair bills either. At the end of the lease, you simply return the car and walk away, or start a new agreement for the latest model.

Leasing also gives you flexibility. If your business grows or your needs change, you’re not stuck with a car that no longer suits you. You can upgrade, downgrade, or switch to something entirely different. Compare that to buying, where you’re locked into ownership and all the hassles that come with selling a used car.

But leasing isn’t your only alternative to buying. Other financing options, like hire purchase or a finance lease, let you spread the cost of ownership over time. With hire purchase, you’ll own the car at the end of the agreement, while a finance lease gives you more flexibility to upgrade or return the vehicle. Leasing, on the other hand, is simpler – you pay a fixed monthly fee, hand the car back at the end, and avoid the hassle of selling it later. For more information, read Top 4 business car hire options.

What are the tax benefits and financial incentives of leasing?

Leasing a Range Rover for your business comes with several financial perks. Here’s what you can expect:

• VAT reclaim: If your business is VAT-registered, you can reclaim 50% of the VAT on your lease payments if the car is used for both business and personal trips. If it’s purely for business, you may be able to reduce your business's taxable income by 100% of the lease VAT.

• Corporation tax relief: Lease payments are tax-deductible, reducing your taxable profits. For cars emitting over 50g/km CO2, you can claim back 85% of the lease cost. For lower-emission models, it’s 100%.

• Benefit-in-Kind (BIK) savings: If you provide the car as a company benefit, electric or hybrid models come with lower BIK rates, making them more tax-efficient for your employees.

• Predictable costs: Fixed monthly payments make budgeting easier, with no surprises when it comes to tax or depreciation.

These benefits add up over time, making leasing a cost-effective way to access a premium vehicle. Just make sure your accountant is aware of the arrangement, so you’re claiming everything you’re entitled to.

How is leasing more flexible and convenient than buying?

Leasing a Range Rover gives you options that buying outright doesn’t. Most agreements last between two and four years, and at the end, you can simply return the car and walk away. There’s no fuss, no haggling with buyers, and no waiting for a sale. If you’ve grown fond of the vehicle, some leasing companies will let you extend the agreement or even buy it outright.

Maybe your business is expanding, and you need a bigger vehicle. Or perhaps you want to switch to an electric model to cut running costs. With a lease, you’re not tied to one car forever. You can adapt your fleet as your business evolves. And if you opt for a maintenance-inclusive deal, you won’t have to worry about servicing or repairs either. Everything’s covered in one simple payment.

This flexibility can be particularly useful if your business is still growing. You might not know exactly what you’ll need in three years’ time, but with a lease, you’re not locked in. You can adjust your fleet as your circumstances change, without the hassle of selling or trading in a car you own. Leasing is a relatively low-risk way to keep your business moving forward.

What risks are there to consider when leasing a Range Rover?

Leasing has many benefits, but there are some potential downsides to consider too.

• Mileage limits: Most leases come with an annual mileage cap (usually 10,000-15,000 miles). If you go over it, you’ll face extra charges per mile.

• Damage fees: While normal wear and tear’s expected, more serious damage could result in a bill at the end of the lease.

• Early termination fees: Ending the lease early can be expensive, so it’s important to choose a term that suits your business plans.

• No ownership: You may not own the car at the end of the lease, which might not suit everyone - particularly if you prefer to have assets on your books.

• Admin fees: Some leases include hidden costs, like admin fees for setting up or ending the agreement, so always check the small print.

How to secure the right Range Rover leasing deal

Not all leasing deals are created equal. So to get the best value, it pays to shop around. Compare quotes from different providers, and don’t be afraid to negotiate. Look for competitive monthly rates, but also check what’s included. Some deals come with maintenance, breakdown cover, or even insurance, and bundling these in could save you money in the long run.

Using a broker like Funding Options by Tide gives you access to a wider range of lenders, which means more choice and more competitive rates. We work with over 120 lenders, so we can help you find a deal that fits your budget and your business needs. And because we specialise in business finance, we understand the unique challenges you face.

However you source your lease, make sure you read the fine print before signing anything. Check the mileage limit, the excess wear and tear policy, and any admin fees. It’s also worth asking about the process for returning the car since some companies are stricter than others.

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Checking if you’re eligible is free, only takes a few minutes, and while a full application would impact your personal or business credit score, checking eligibility won’t. Just submit your details via the link below to find out if you could be eligible to borrow up to £20 million.

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FAQs

How does leasing a Range Rover improve my business image?

A premium vehicle like a Range Rover sends a clear message to clients and partners: your business is successful and professional. It’s a small detail that can make a big impression, especially if you’re meeting clients face-to-face. And for your team, it’s a perk that shows you’re invested in their comfort and status.

Can I lease a Range Rover if my business has limited credit history?

You may be able to, but your options could be more limited. Brokers like Funding Options by Tide can help by connecting you with lenders that specialise in working with newer or smaller businesses. You might need to provide additional documentation, but it’s often possible to secure a deal.

What happens if my business needs change during the lease term?

Most leases are fixed-term, so ending early usually comes with a fee. But some providers offer flexible agreements that let you upgrade or downgrade partway through. Consider a shorter lease if you expect your needs to change.

Are there any hidden costs I should be aware of?

Watch out for excess mileage charges, damage fees, and admin costs for early termination. Some leases also require a deposit or an upfront payment equivalent to several months’ rent. Always read the small print so you’re not caught out.

Is leasing a Range Rover more cost-effective than buying?

It depends on your circumstances. Leasing avoids the large upfront cost of buying and protects you from depreciation. But over the long term, buying might work out cheaper if you keep the car for many years.

Can I include maintenance and servicing in my lease agreement?

Yes, many leasing companies offer maintenance packages as an add-on. These cover servicing, repairs, and sometimes even tyres and breakdown assistance. It’s a convenient way to budget for running costs, but make sure you understand what’s included before you commit.

What happens at the end of the lease?

At the end of the agreement, you’ll return the car to the leasing company. They’ll inspect it for damage and mileage, and if everything’s in order, you can simply walk away. Some providers may offer the option to extend the lease or buy the car outright, but this isn’t always the case.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.