Different Types Of Vehicle Leasing
It is deemed that vehicle leasing can be very beneficial in terms of finances for both the public and businesses. On the other hand, with tons of available options these days, being bogged down is so common. By reading this article, you are about to learn the jargons and other helpful tips that can be useful when deciding which contract hire or car lease deal to choose for your needs.
Number 1. Choosing a contract hire – no matter if you’re a partnership, limited company or sole trader, this contract hire will probably do fine, which makes it very versatile. 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.
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. 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. You’ll have to hand the car back to the lender at the end of contract agreement or you can pay them to keep the car for good if you want to.
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. 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.
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.