Leasing cars or any other vehicles has become very popular in many countries today, though it began in the US. It is because of the practical benefits that it lends, that people and companies wish to now opt for lease as compared to buying a new vehicle. You can derive many benefits and also save money when you opt for Car Leasing.
Contract Hire is the best car leasing option
Contract Hire is one of the main types of leasing a car. It allows for leasing of the car for a long period of time with a monthly payment. The period of the lease can last up to five years. Now with this leasing option, the ownership of the car is with the lending company and they are responsible for any risks that will follow.
For businesses, this is an ideal option as they can opt customize it for their requirement and even hire multiple cars. So, in addition to getting more cars, they also get pool mileage allowances and in some cases even extra discounts. Also, they can cover the maintenance, tyre costs and even any breakdown cost in the contract and thus avoid all risks. Thus for businesses, who need vehicles for different aspects of their work, Contact Hire serves as the best option.
Another benefit is that due to the leasing option, companies can keep a track of their monthly expenses and it can help them evaluate and estimate their budget more realistically. Also, it helps them improve the cash flow. And note that the company does not own the car so there is no need to look at its administration or think about the depreciation after some years. The company also does not have to worry about selling it, which also takes lot of effort and time which a business cannot afford to waste.
Businesses also get VAT returns on leasing cost which means they can get 50% of the payment on the maintenance and complete payment on the maintenance.
Also, look at the other factors wherein you can save money. As you do not own the car, you do not have to suffer the depreciation cost. Plus, you are not paying any monthly loan payment to the bank. Of course, with economyleasing, you have to pay a monthly payment but that is far less compared to the loan payment. Plus, you do not have an liability. For businesses as well as individuals, taking a loan for car purchase means they have to return the loan after the period ends and what if they are unable to? Thus with leasing, there are no such fears. You not only save money but you are also enjoying a great car for your journeys.