Car Leasing For Trade And The Public At Large – We Clarify The Finer Points

In opposition what many think, car leasing is accessible to the public in addition to businesses. Most individuals or businesses thinking of taking out a motor vehicle lease or vehicle leasing agreement, will in all probability end up going down the contract hire route (often known as ‘personal contract hire lease’ where individuals are concerned).

Not only does contract hire car leasing enable the lease customer to benefit from having the car taken back on the finish of the lease interval, instead of being saddled with a depreciating asset, it may well also provide a tax-saving option to individual company vehicle drivers.

‘Contract purchase’, alternatively (known as ‘personal contract purchase’ for non-business clients) can provide the lease customer with the choice of buying the motor vehicle, as soon as the lease period is over, at a value agreed on the outset of the lease agreement. In some cases, the lease customer will benefit should the true value of the vehicle on the finish of the lease interval be higher than the worth initially anticipated at the start of the lease.

Nonetheless, for businesses, there are two other types of car leasing: ‘lease purchase’, whereby the firm commits to purchasing the motor vehicle on the end of the lease interval, and ‘finance lease’ where the car is sold on the finish of the lease interval, in order that the leasing company recovers the full acquisition price of the car, with any balance from the sale going to the business.

For small companies, credit could be hard to come by, even with a promising economic plan or self-evident business success. With regards to securing vans however, obtaining credit is one thing the sensible business-person doesn’t have to worry about.

Van leasing permits a small business to enjoy long-term access to the latest makes and models of vans, without having to satisfy the strict standards needed for a financial advance from a bank.

Van lea sing works on the principle of accessing one’s own choice of van in return for a fixed month-to-month payment to a leasing company. Van leasing prices are usually much cheaper than the equivalent monthly payments for a finance purchase agreement or loan, just because they are primarily based on the amount by which each van depreciates in the course of the lease interval, rather than on a van’s acquisition price.

Depending on the needs of the company, van leasing can involve: a return of the vans to the lease company at the end of the 2 to 4 year lease period, the choice to purchase the vans once the lease period is over, or the facility for the lease company and the company to sell the automobiles on the end of the lease period, with the company benefitting from any returns over and above the balance of the original acquisition prices.

contract hire specialists lease4less can take the monetary worries out of driving visit our website for more details of our latest deals and money saving offers.