Which Car Leasing Option Is the Right One?

Admin| October 10, 2009 | No Comments

Which car leasing option is the right one for you? That will be one of the biggest decisions that you’ll have to make when leasing a vehicle. Leasing has grown considerably over the past several years and it continues to grow in popularity every year. People are discovering that it has much to offer that you simply can’t get with a car loan. If you choose to lease a vehicle you need to choose the right leasing option.

There are eight leasing options available for you to choose from which are listed here:

1. Personal Contract Purchase
2. Personal Contract Hire
3. Contract Hire
4. Contract Purchase
5. Flexi-Lease
6. Lease Purchase
7. Finance Lease
8. Sale and Leaseback

Personal Contract Hire and Personal Contract Purchase were designed for individuals who would rather lease a vehicle instead of buy. They are similar in many ways but they do have some differences. For example, you can have the option of buying the vehicle at the end of the agreement if you choose Personal Contract Purchase but you may not have this option with Personal Contract Hire. All other leasing options were designed for both small and large businesses.

Contract Hire is a good option for any business that needs to lease one or more vehicles. It’s a fixed contract so a termination fee would be required if you ended the agreement early. Contract Purchase is another company car leasing option that’s available. This one is perfect for the business seeking to obtain high value vehicles with the option of buying them without depreciation risks. You’re basically combining Contract Hire with the Lease Purchase option when you choose Contract Purchase.

The Finance Lease option is popular for VAT registered companies and the Lease Purchase option is designed for companies that are not registered for VAT who would like to purchase the vehicles eventually. Flexi-Lease is the perfect example of the flexibility that a leasing package can offer and it allows you to combine some of the benefits of long term leasing with a short term agreement.

The Sale and Leaseback option is designed for a company that own their vehicles but who wants to release the capital and transfer it to a “VAT-beneficial funding method”. This option is not used as often as the others. Car leasing has come a long way through the years and changes continue to take place as leasing companies are finding ways to provide clients with the services they need.

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