Contract hire and Car Leasing

For the general public and businesses, car leasing is definitely financially beneficial. However, it can be very easy to get caught up in all different available options. When choosing the car lease contract that is ideal for you, these tips may come in handy:

Choosing Contract Hire:

Whether you are part of a partnership, a limited company or you are a sole trader, the contract can be versatile. You are only paying a monthly fixed rental fee which is of course an advantage. Another one would be that you are paying towards services and repairs of your vehicle, should you need such. 

You must make sure that these things are included though. Generally, car dealerships will offer their clients a contract from 18-48 months; you can then return your chosen vehicle with no extra costs.

Choosing Personal Contract Purchase (PCP):

If you have a good credit rating, personal contract purchase will be an option open to you, generally for a 2 or 4 year deal. For fixed monthly payments, you will start with a low payment initially and follow on. You have the choice at the end of the contract to buy the car and keep it, or hand the vehicle back to the lender.

Choosing Personal Contract Hire:

Similar to a PCP, by being offered on a 2-4 year contract, this is a great idea for companies. This is not a company car, but an employee is of a certain stature and entitled to a personal car allowance. Again, to avoid any extra costs, you should make sure all services and maintenance costs are included in the contract you will sign.

Lease purchasing, hire purchasing and non status contracts / sub prime contracts are all good options to look into if you are someone with a bad credit rating or a new company.

Its crucial to speak with someone from a good company that is willing to talk you through everything start to finish. They should then offer you the vehicle that is right for you or even your company rather than suggesting anything. It needs to be specifically tailored to your needs otherwise there is no point in getting involved with car hiring.