A Beginners Guide To Vehicles

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, 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. The biggest advantage for selecting contract hire is that, you’ll only have to pay for monthly or fixed rental and oftentimes included in the package is the service as well as repair of vehicle you’ve chosen.

It is smart to ensure that this is included in any lease deals or offers to be able 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 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 – 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. 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.

These are some of the kinds of car leasing that you have to take a look at 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.