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What is leasing?

To Hire Or Not To Hire

Contract hire or vehicle lease is like hiring a car over a long period of time, this makes it much cheaper. Costs are based on the value of the car and the depreciation. The value of the two is based on your rental.There are some great deals out there and they include road tax and you have the option to add a maintenance package which will include service, maintenance and tyres.

One of the biggest issues that people have is the fact that you never own the car. The best way to get over this, is to work out the monthly cost of your own car.The first thing to do is work out how much did you pay for your car. Then work out what your car would be worth today if you sold it. The difference between the two is the depreciation, this is how much it has cost you to own your current vehicle. Then you need to add to this any additional costs, such as tyres, tax, services, tyres, interest charges on loans, wear and tear etc. Divide all of this by the amount of months that you have owned the vehicle, this will give you the monthly costs for you vehicle.

In most cases, you will discover that contract hire is the cheaper option.PCP is not the same as leasing a car, and usually is more expensive. As this is a loan, you will also attract an interest payment and the full value of the loan goes on your credit rating. You will still need to tax the vehicle, replace the tyres, etc. Service plans are available from dealers at an additional cost. For more information about the pros and cons PCP, Hire Purchase and Leasing, keep an eye open for our forthcoming article.

There are some fantastic deals available on contract hire, these work on a set mileage and term of lease. These need to be set prior to the lease starting but a variety of mileage options are available to suits your lifestyle. You have the option to choose making a larger upfront payment and smaller monthly payment or a smaller upfront payment and slightly larger monthly payments. Whichever payment option you choose, the total amount payable for the term of the contract will remain the same. A variety of options are available to suit your lifestyle.

Contract hire was initially for business customers, but this has changed in recent years due to the changes in company car benefits. You can find our latest deals on our website, or call one of our team on 0800 097 0897 or www.fleetprices.co.uk

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Posted on 9th July 2018 at 11:27 AM

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