Types Of Vehicle Leasing You Should Know
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 – 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 is smart to ensure that this is included in any lease deals or offers to be able to avoid dealing with hidden costs. The contract hire is only available for the duration of 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. 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 – almost the same with PCP as this is offered on 2 to 4 year basis 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.
These are just some of the different kinds of car leasing that you should take into mind when making initial inquiries regarding car lease. 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.