Business users contract hire & leasing
Spotlight on vehicle leasing
What Is Leasing? – Contract Hire Explained
Leasing is a long-term rental agreement offering the exclusive use of a car or commercial vehicle for a set period of time at a fixed monthly cost. It offers an alternative to traditional vehicle acquisition and can often be a more appropriate and affordable alternative.
Car leasing helps you avoid any unexpected costs by offering a fixed monthly payment for the term of the lease. The customer avoids the risk and worry of any depreciation or the hassle of selling the vehicle at the end of the contract term.
How Leasing Works
At the start of a leasing contract, the customer pays an initial rental usually equivalent to three monthly payments.
The customer then makes monthly payments for the duration of the contract term. At the end of the lease contract (typically two, three years or four years), the customer simply hands the car back without any further obligations, or may choose to purchase the vehicle depending on the type of contract taken.
- Subject to finance approval and payment of a processing fee the customer accepts a finance agreement via email or post.
- The customer pays a fixed monthly payment by direct debit to the finance company for the duration of the contract.
- At the end of the contract the finance company collect the vehicle.
Car Leasing vs Buying
There are many practical reasons to leasing a car than buying. Features include:
- Fixed, lower monthly payments
- Lower initial deposit
- Inclusive road tax and breakdown recovery
- Variable contract duration and mileage terms
- Optional maintenance package to spread the cost of servicing
With a leasing contract, you also have the opportunity to drive a new car every two, three or four years and all of the vehicles include the standard manufacturer’s warranty.
Types of Lease Contracts
There are a number of different types of lease contracts available to cater to your business or personal requirements. To find out more about the different types of leasing options, simply contact Kevin Gander at our Beadles Business Centre.
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