Whether you decide to lease or purchase a car, you are still securing the usage of a vehicle. As far as the legal niceties are concerned, if you get a car, it will not legally belong to you, although you will be responsible for taking care of it. If you lease your vehicle, it will be according to the agreement with the hiring company who leased it to you. Owning the vehicle might not be all that vital for anyone planning to lease a vehicle, but your ultimate decision will depend on whether buying the car or leasing it would be your most cost-effective option. If you are having a bit of difficulty deciding whether to buy a car or lease it, here's how you can effectively save money with contract hire and car leasing.
The Advantages Of Contract Hiring
Here’s the thing: don't be tied down by car financing. Vehicle contract hire gives car buyers the choice to simply lease a car that they will enjoy driving, especially one that may not have been affordable for them if they needed to buy the car outright. If you set your vehicle up through contract hire, you'll be able to feel good about getting a vehicle furnished with some of the most up-to-date advances in technology, fuel-efficient options, and many more appealing features.
A Short-Term Commitment
Most terms for contract hire are about two to three years, and so you will be able to enjoy the car, without actually needing to be tied down to it for too much time. Many UK businesses elect to lease their company vehicles to reduce their working capital and redirect the funds into more valuable core business activities. The experts would attest that possessing assets that depreciate over the short-run is not good business practice. Therefore, if your company chooses a vehicle leasing option, you will see valuable tax incentives available and, after repaying the lowest monthly cost plus interest over the specified period, you will only need to make a final payment following the lease depending on the price of the vehicle.
All-Inclusive Packages
Contract hire and leasing also offers other perks that may not be available to those buying their cars. Road tax for leased vehicles is usually covered by the contract hire company. Free roadside recovery is often on offer as well. When deciding whether or not to buy or lease a vehicle, you will need to sit down and spend some time to figure out the price of both options. Whichever is the most cost-effective to suit your needs may be your best choice.
Custom Options
When you choose a car leasing company, the package might include road tax and regular car maintenance, servicing, and even roadside recovery. Alternatively, the company may be prepared to offer a custom package to fit your needs. Most vehicles also come with a full warranty from the manufacturer.
With car leasing, you get trouble-free motoring with the latest models, at an affordable price. It also makes it easier to budget your cash flow each month because your vehicle costs are fixed for the duration of the vehicle lease. So you will never have to face large unexpected repair bills, either.
