The Major Benefits Of Car Leasing And Contract Hire And How To Get The Best Possible Deal If you are looking for a new car or your business needs to provide vehicles for your employees then the option of car leasing is one that you should consider. To buy a number of new cars would be very expensive as this article explains. You may be looking for car leasing and contract hire is the option you would like to consider. Among the many car leasing options available, contract hire is the most attractive one for personal car leasing because it lets people have the certainty of a fixed budget. It may be possible to have a contract hire even if you have bad credit. Companies also prefer to utilize car leasing and contract hire instead of outright purchase or other finance options. Why should you consider car leasing and contract hire? Many companies prefer car leasing for their employees for several reasons such as: • • • • • •
Avoid investing large sums in an asset which keeps depreciating as leasing takes up only a small initial deposit. Cash outflow can be adjusted to suit the company’s requirements by opting for balloon pay at the end. The availability can be checked online and the options can be selected to get them delivered easily. Freed from the hassle of paying road tax every year as it is usually included in the deal. For extra payment, maintenance may be taken over by the leasing company. Tax benefits and full reimbursement of VAT
People consider personal car leasing for various other reasons including flexibility, bad credit history or no credit history. Here are some reasons: •
When you do not want to tie up a large amount of money in an asset which keeps on depreciating, you can consider car leasing and contract hire instead of purchase.
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When enough credit history is not available, one may not get finance for a large expense or the interest rate on the loan would be too high. If you have just started working or if you are self employed with no credit history, car leasing and contract hire would be an option.
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When you have bad credit history for some reason, you may be refused further credit. But you can still consider car leasing because if you can convince the car leasing companies about your repaying capacity, they will consider you.
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When you do not know how long you will be using the car and when you prefer to upgrade your car with an expected rise future income, you can go for car leasing which can be terminated any time.
The advantages of car leasing and contract hire from reputed firms: • • • • • •
No need for credit history as long as repayment capacity can be proven. No need to be on the electoral list or have utility bills in your name. Fixed prepayment of one month at a time after the initial payment of three months’ rent. No penalty for cancelling the contract early. Easily availed by self employed people and agency workers. Availability of a wide range of makes and models to choose from.
The essential requirements to avail of personal car leasing: • • •
Address proof; the leasing company needs to know where to contact you. A valid driving license. Reliable source of income; should be able show proof of regular work and pay for the minimum amount required for the category.
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Insurance should be provided by the client.
Resource When you need a new car or your business needs to supply new vehicles to your employees then there are a few options to consider. You can go for car leasing and contract hire or even personal car leasing bad credit as there are many companies that now offer these deals. There are many advantages to leasing which will save you money in the longer term. It is often possible to obtain higher specification vehicles for the same monthly repayments on a loan for a lesser car. Use the Internet to find quality leasing companies that can offer you the right deal.