Types Of Vehicle Leasing You Should Know
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. 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. 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.
To be able to avoid dealing with problems like hidden costs, it will be a smart move for you to make sure that this is included in lease deals or offers. 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 – this particular car lease deal or simply known as PCP is being offered often on 2 to 4 year deal. PCP is available to a number of interested individuals as well 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. At the end of contract agreement, you’ll have to hand the car back to lender of if you want to, you can pay them to keep the car for good.
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.