According to "Car Leasing UK"
Car Leasing is an arrangement where customers hire a car for a specified period and preset mileage by paying a fixed monthly instalment to the car leasing company who owns the car.
Car leasing is for one and all. It allows customers to acquire their favourite cars which are otherwise beyond their budgets. It is crucial to compare the features of various lease options available and select a lease that best suits your requirement.
Length of Contract: Generally lease agreements are for 18, 24, 36, or 48 months.
Negotiate: Car leasing companies usually buy vehicles in large numbers and hence can pass on the benefits to customers.
Residual Value of the Car: Select a car with a good residual value at the end of the contract. This will bring down the monthly instalment.
Early Lease Termination Penalties: Many lease agreements have stringent penalty clauses for early termination. Analyse these clauses carefully.
Excess Mileage Charges: Estimate your car usage accurately before entering into a contract because excess mileage charges may apply.
Wear and Tear: Read wear and tear clauses carefully. Most lease contracts specify that charges for excess wear and tear will have to be borne by the customer at the time of returning the car.
Modification Clauses: Usually customers are not allowed to make any modifications to the car. If the customer makes any changes, he will have to bear all expenses to bring the car back to its original condition, when returning it to the lease company.
Business Car Leasing Contract Hire Contract Hire is the only off balance sheet car leasing option. VAT recoverable with no risk of ownership, and an optional maintenance package. Contract Purchase Contract Purchase is a vehicle leasing option best suited to companies who cannot claim VAT and wish to have an option to purchase at the end of the lease. Maintenance package available as with contract hire. Lease Purchase Lease Purchase is a car finance option is similar to contract purchase, however the balloon payment at the end of the contract is the hirer’s responsibility. Finance Lease Finance Lease is an on balance sheet car leasing option. VAT recoverable, suited to those who wish to take the risk of ownership as the hirer is responsible for the balloon payment. Contract Options Whether you choose Contract Hire or Contract Purchase, your choice of a contract which may or may not include a maintenance agreement will differ in cost depending upon two main criteria, notably the anticipated mileage and length of hire.Personal Car Leasing Personal Contract Hire Personal Contract Hire is a car leasing option popular with ex-company car drivers, offering fixed price risk free motoring, with no pre-set option to purchase. Personal Contract Purchase Personal Contract Purchase is a method of personal car finance offers a guaranteed optional purchase price at the end of the contract. Lease Purchase Lease Purchase is a method of motor finance is best suited for the finance of prestige vehicles, where there is potentially a significant benefit in taking on the responsibility of the residual value. Contract Options Whether you choose Personal Contract Hire or Personal Contract Purchase, your choice of a contract which may or may not include a maintenance agreement will differ in cost depending upon two main criteria, notably the anticipated mileage and length of hire. We also offer GAP cover and Early Termination Insurance on all our car leasing contracts where appropriate, please see our Insurance page.
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