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. You’ll only need to pay for monthly or fixed rental and most of the time, included in the package is service and even repair of the vehicle you have chosen, which is the biggest advantage for choosing contract hire.
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 available on a18 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 available to a number of interested individuals as well 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. Just like with other deals, you have to be sure that the service, repair and maintenance are included in the deal and that you are going to return the vehicle before the agreement expires.
When making initial inquiries about car lease, these are only some of the types of car leasing that you should be mindful about. Say for example that you have a bad credit rating or has recently started a new company on the other hand, there are several options that you can try if you wish to lease a car which you might want to inquire like lease purchase, subprime contracts or non-status contracts as well as hire purchase.