Different Types Of Vehicle Leasing
For both the public and businesses, it is well documented that vehicle leasing can be financially beneficial for them. On the other hand, it’s easy to be bogged down with the different options available before you. As you read this article, you are going to learn about jargon as well as other reasonable tips that can be useful when selecting 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. The biggest advantage for selecting contract hire is that, you’ll only have to pay for monthly or fixed rental and oftentimes included in the package is the service as well as repair of vehicle you’ve chosen.
It is smart to ensure that this is included in any lease deals or offers to be able 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 – this particular car lease deal or simply known as PCP is being offered often on 2 to 4 year deal. PCP is available to a number of interested individuals as well so long as they have good credit rating. 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. At the end of the contract agreement, you can pay the car to keep it for good otherwise, you should hand it back to the lender.
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.