About Vehicle Leasing
It’s well documented that vehicle leasing can be beneficial in terms of finances both for the general public and businesses. On the other hand, with tons of available options these days, being bogged down is so common. Here in this article, you’ll learn about the jargon as well as other reasonable tips that can be very useful when choosing which contract hire or car lease deal to choose for your needs.
Number 1. Choosing a contract hire – contract hire is basically a vehicle leasing contract that’s so versatile because it works well regardless if you’re a partnership, limited company or sole trader. One of the most notable benefits for choosing contract hire is that, you only need to pay either monthly or fixed rental and most instances, included in the package is repair and service of the vehicle you’ve selected.
It will be a smart move of you to make sure that this is included in any lease deals or offers to avoid dealing with hidden costs. The contract hire is only available for the duration of 18 to 48 months contract at which time you must return the car to the lender.
Number 2. Choosing personal contract purchase – otherwise known as PCP, this car lease deal is typically offered on a 2 to 4 year deal. And so long as you have a good credit rating, you can easily use PCP. This is almost the same to other types of lease available in that you should settle the initial low amount first and will be followed by fixed monthly payments. You’ll have to hand the car back to the lender at the end of contract agreement or you can pay them to keep the car for good if you want to.
Number 3. Choosing personal contract hire – much like personal contract purchase, this is also offered on 2 to 4 year basis and is the best option for business and companies that are providing employees of certain stature of personal car allowance. As with most deals, you must be certain that the service, repair and maintenance are being offered as part of the deal and that you’ll return the vehicle prior to the agreement.
When making initial inquiries about car lease, these are only some of the types of car leasing that you should be mindful about. On the other hand, in the event that you have just recently started a new company or has a bad credit rating, there are other options available if you would like to lease a car that you may want to inquire about including lease purchase, subprime contracts or non-status contracts as well as hire purchase.