The main types of car leases you should know about

The main types of car leases you should know about

Leasing is getting popular because of the many benefits it comes with. Also, it is ideal for those who do not want to get hassles of banks and paper work that come with owning a car. Of course, there is also the finance matter. With Car Leasing, you get a great car to use for personal travelling or for business purposes and you do not have to worry about expenses as you just pay a monthly charge.

The different types of leasing

Personal contract hire: This option is available for both businesses and individuals. In this, the car can leased for a longer period of time. It offers a lot of flexibility in terms of payment, contract, mileage contract, cost motoring and so on. You can return the vehicle once the lease period ends. Also, you can include the maintenance cost in the contract. For businesses, it is a good option because of the tax benefits.

Car Leasing

Contract Purchase: This is an option wherein the business or the person who hires the car can purchase it after the lease time. In this method of leasing, an amount is calculated by subtracting the approximate car’s depreciation amount from the car’s cost and this is the monthly cost you will have to pay. For individuals as well, this is a great option for Car Leasing. The initial payment is less and you need not worry about depreciation as well.

Finance lease: This is a far better option for businesses but those registered under VAT. They can pay the cost of the vehicle over a period of time or opt for a low monthly payment and finally, at the end of the lease tenure, they can opt for the final payment. This amount is calculated on the basis of the car’s value post depreciation.

When you approach a dealer or company for leasing, study the factors and rules before you agree on the type of lease you think is right for you. Leasing a car in any day seems to be a far more practical solution these days considering the value of cars and their cost. Also, as newer cars hit the market, the older ones lose their value. And you also know that after some period of time, you have to forego of your old car and get a new one for safety and fuel efficiency reasons. With leasing, you can afford to do so without having to search for funds or dip into your savings. Since there are different types of leasing, you should look into each type, read about them, understand the pros and cons and then decide. At the end of leasing does give you many benefits, provided you choose the right type of leasing.