Tuesday 6 January 2015

Personal Car Leasing Explained

What is car leasing?

Car leasing is similar to renting, where a person only pays for the use of a vehicle over a specific period of time. There are two types of leasing that leasing companies offer –personal and business car leasing. The lease term usually covers a maximum period of 60 months, after which the users are expected to return the vehicle to the finance company in a decent condition. Leasing a vehicle is very popular owing to the depressing economic conditions and the compulsion among most people to live within a budget.

Personal contract hire

The option of personal contract hire is only available to private individuals for their personal use. If you want to lease out a vehicle for business purposes, you will have to refer to business contract hire. With personal contract hire deals, the users pay the company a fixed monthly payment covering the lease period. This payment is predetermined and is not subject to the ups and downs of the market. The user does not have ownership of the vehicle, though he can use it as if it were his own. The company retains the ownership rights and after the expiry of the lease term, the car should be returned to the company in a decent condition. The user can renew the lease term after its expiration or can just hand over the vehicle. Some of the leasing companies also offer the users the option of purchasing the leased vehicle, if they so wish to. The leased vehicle is sold to them at a much lower price as compared to its original market price.

Perks of personal car leasing

•    Opportunity to drive brand new vehicles but not having to spend too much. Leased vehicles do not involve any huge upfront or initial cost and the monthly payments are also quite low.

•    The users do not have to undertake any financial risk as they are not subject to the depreciating value of the vehicle; neither do they have to worry about selling the car nor do they have to pay the entire price of the vehicle.

•    Maintenance of the vehicle is normally included in the lease term.

•    Freedom to drive better cars with advanced features after every 2 or 3 years.

•    No long term expenses compared to purchasing a vehicle.

Log on to www.lvm.co.uk and learn more about leasing deals.

2 comments:

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  2. Wow, nice post, I like your personal car lease experience with different companies, when I went to the Dubai, I lease a company amexuae.com, then I realize the importance of car leasing, especially when you're all alone.

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