Automotive leasing is most often related to the needs of business. Yet automotive leasing is also the selection of many private car drivers. So why is this? And what are the benefits?
* Car leasing is often favoured by people as a means of using a company car allowance given by their employer without having to pay company car tax. With Private Contract Purchase the individual can also buy the car on the end of the agreement, an option unlikely to be obtainable with a company car.
* Secondly, first-time buyers or those with very bad credit ratings usually find car leasing a better path to automobile usage than attempting to secure a car loan. The comparatively cheaper car leasing monthly payments compared with loan repayments also tend to benefit these individuals. Be warned though that there might be penalties for individuals who fail to maintain the monthly payments agreed under the terms of the lease. Automobile leasing may also have the advantage over finance agreements in that there isn't a danger of being a victim of a car's depreciation and finding your self at the end of the finance term not being able to sell the automobile for enough cash to pay back the finance company.
* A third category belongs to those people who simply desire the convenience of automotive leasing, whether it be the regular monthly payments or the greater reliability associated with a new car.
* A fourth category merely loves to be seen about in the latest models for a relatively modest month-to-month layout, and why not you might say.
Of the various kinds of vehicle leasing available, contract hire remains the most popular, accounting for about 50% of the market. It is simple to see why. Contract hire is what most individuals consider when they speak about vehicle leasing. Under contract hire, the customer leases a vehicle from the leasing firm for an agreed interval and an agreed monthly fee, after which the car 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 every monthly payment thereafter. This compares favourably with the terms of ordinary finance agreements, and as such is of benefit to those businesses which rely heavily on cash flow. A second crucial way in which contract hire may help businesses is to allow those which are VAT-registered, to claim back VAT on their lease payments.
A third benefit of contract hire car or van leasing is that prices are controlled and therefore simpler to plan over a long period. On the end of the contract interval a replacement vehicle is delivered, the old automobile is collected, and the month-to-month payments continue as before. There aren't any worries about depreciation, about automobile disposal or about trying to negotiate the acquisition of a brand new vehicle.
* Car leasing is often favoured by people as a means of using a company car allowance given by their employer without having to pay company car tax. With Private Contract Purchase the individual can also buy the car on the end of the agreement, an option unlikely to be obtainable with a company car.
* Secondly, first-time buyers or those with very bad credit ratings usually find car leasing a better path to automobile usage than attempting to secure a car loan. The comparatively cheaper car leasing monthly payments compared with loan repayments also tend to benefit these individuals. Be warned though that there might be penalties for individuals who fail to maintain the monthly payments agreed under the terms of the lease. Automobile leasing may also have the advantage over finance agreements in that there isn't a danger of being a victim of a car's depreciation and finding your self at the end of the finance term not being able to sell the automobile for enough cash to pay back the finance company.
* A third category belongs to those people who simply desire the convenience of automotive leasing, whether it be the regular monthly payments or the greater reliability associated with a new car.
* A fourth category merely loves to be seen about in the latest models for a relatively modest month-to-month layout, and why not you might say.
Of the various kinds of vehicle leasing available, contract hire remains the most popular, accounting for about 50% of the market. It is simple to see why. Contract hire is what most individuals consider when they speak about vehicle leasing. Under contract hire, the customer leases a vehicle from the leasing firm for an agreed interval and an agreed monthly fee, after which the car 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 every monthly payment thereafter. This compares favourably with the terms of ordinary finance agreements, and as such is of benefit to those businesses which rely heavily on cash flow. A second crucial way in which contract hire may help businesses is to allow those which are VAT-registered, to claim back VAT on their lease payments.
A third benefit of contract hire car or van leasing is that prices are controlled and therefore simpler to plan over a long period. On the end of the contract interval a replacement vehicle is delivered, the old automobile is collected, and the month-to-month payments continue as before. There aren't any worries about depreciation, about automobile disposal or about trying to negotiate the acquisition of a brand new vehicle.
About the Author:
The car lease professionals at lease4less are committed to providing impartial advice, and the very best contract hire deals to their clients. They have a massive range of available vehicles, and rates that leave the competition standing.
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