April 28, 2017
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 – basically, contract hire is a vehicle leasing contract that is very versatile as this works well no matter 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.
To be able to avoid dealing with problems like hidden costs, it will be a smart move for you to make sure that this is included in lease deals or offers. Contract hire is offered often on 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. 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.
These are some of the kinds of car leasing that you have to take a look at when making initial inquiries regarding car lease. 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.
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