Contract Hire Leasing – The Financially Cautious Alternative To Purchasing A Car
by Lee Jamerson on 14/10/10 at 2:53 am
Car leasing is most often related to the needs of business. Yet car leasing is also the choice of many private car drivers. So why is this? And what are the benefits?
* Automobile leasing is often favoured by individuals as a way of using a company car allowance given by their employer with out having to pay company car tax. With Personal Contract Purchase the person can also purchase the car on the end of the agreement, an option unlikely to be available with a company car.
* Secondly, first-time buyers or those with below-average credit scores usually discover car leasing a better route to car usage than trying to secure a car loan. The comparatively cheaper car leasing payments compared with loan repayments also have a tendency to benefit these individuals. Be warned though that there will probably be penalties for those who fail to maintain the month-to-month payments agreed under the terms of the lease. Automotive leasing may also have the advantage over finance agreements in that there is no danger of being a victim of a car’s depreciation and finding your self at the end of the finance term not having the ability to sell the car for enough cash to pay back the finance company.
* A third category belongs to those individuals who merely prefer the convenience of automotive leasing, whether it be the regular monthly payments or the better reliability related to a brand new car.
* A fourth category simply likes to be seen about in the latest models for a relatively modest monthly layout, and why not you might say.
Of the several types of car leasing available, contract hire remains the most popular, accounting for about 50% of the market. It’s easy to see why. Contract hire is what most individuals consider when they talk about vehicle leasing. Under contract hire, the client leases a car from the leasing company for an agreed period and an agreed monthly rate, after which the vehicle is returned to the leasing company.
One of the reasons for the high take up in contract hire is the low level of entry into the scheme and the comparatively low amount needed for each month-to-month payment thereafter. This compares favourably with the terms of normal finance agreements, and as such is of benefit to those businesses which rely heavily on cash flow. A second essential way in which contract hire can help companies is to allow those that are VAT-registered, to claim back VAT on their lease payments.
A third good thing about contract hire car or van leasing is that costs are controlled and due to this fact simpler to plan over an extended period. At the end of the contract interval a replacement car is delivered, the old car is collected, and the month-to-month payments continue as before. There are no worries about depreciation, about vehicle disposal or about trying to negotiate the acquisition of a new vehicle.
The car lease professionals at lease4less are committed to providing impartial advice, and the very best contract hire deals to their customers. They have a massive range of available vehicles, and prices that leave the competition standing.
