Different Types Of 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. 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 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. 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. PCP is also available to many interested individuals so long as they have good credit rating. It’s nearly the same to other types of lease available in that you need to settle the initial low amount and will then 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 – this is also offered on a 2 to 4 year basis much like personal contract purchase and is the best option for business and companies that provide employees of certain stature of personal car allowance. Like with other deals, you have to be sure that the service, repair and maintenance are offered as part of the deal and that you will return the car before the end of 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, say for example you have bad credit rating or just a new company, there are other available options if you want to lease a car that you might want to inquire about such as lease purchase, subprime contracts or non-status contracts as well as hire purchase.