Automobile leasing is most frequently associated with the needs of business. Yet automobile leasing is also the selection of many private car drivers. So why is this? And what are the advantages?
* Automobile leasing is often favoured by individuals as a way of utilizing a company car allowance given by their employer with out having to pay company car tax. With Personal Contract Purchase the individual can also buy the car at the end of the agreement, an option unlikely to be available with a company car.
* Secondly, first-time buyers or those with low credit ratings usually discover car leasing an easier path to automobile usage than attempting to secure a car loan. The comparatively cheaper car leasing monthly payments in contrast with loan repayments also have a tendency to benefit these individuals. Be warned though that there will likely be penalties for those who fail to maintain the monthly payments agreed under the terms of the lease. Car leasing can even have the advantage over finance agreements in that there isn’t any danger of being a victim of a car’s depreciation and finding yourself at the end of the finance term not being able to sell the car for enough money to pay back the finance company.
* A 3rd category belongs to those people who simply want the convenience of automotive leasing, whether it be the regular month-to-month payments or the greater reliability related to a brand new car.
* A fourth category merely likes to be seen about in the latest models for a comparatively modest month-to-month layout, and why not you might say.
Of the several types of car leasing accessible, 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 discuss vehicle leasing. Under contract hire, the customer leases a vehicle from the leasing firm for an agreed interval and an agreed month-to-month rate, after which the car is returned to the leasing company.
One of many 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 each month-to-month payment thereafter. This compares favourably with the terms of standard finance agreements, and as such is of benefit to those companies which rely heavily on cash flow. A second crucial method by which contract hire may also help businesses is to allow those which are VAT-registered, to claim back VAT on their lease payments.
A 3rd good thing about contract hire car or van leasing is that prices are controlled and therefore easier to plan over an extended period. At the end of the contract period a replacement vehicle is delivered, the previous automobile is collected, and the month-to-month payments continue as before. There are not any worries about depreciation, about vehicle disposal or about trying to negotiate the purchase of a brand new vehicle.
The car lease pro’s at lease4less are committed to providing impartial advice, and the very best contract hire deals to their clients. They have a vast range of available vehicles, and rates that leave the competition standing.