If you are looking to replace your company fleet of vehicles then car leasing is the ideal way to fund the purchasing of new cars. It will enable you to purchase a better quality of vehicle, spread the payments and not have to worry about depreciation in value when you decide to move on again.
Contract hire is basically a car leasing initiative where you contract to rent the car for a period of time, typically three years and guarantee a specific annual mileage over that period, normally 10,000 miles. At the end of the period you can either change cars for a new one or end the deal.
Contract hire terms are easy to compare, so long as the duration of hire and mileage are the same then it’s a straight choice over cost per month. When you buy a car you will find that at if you wish to step outside the agreed contact you will have to pay a hefty settlement fee and when will find that the difference between this and the residual value of the car will leave you in negative equity, which you will not happen with car lease deals.
Ways to ensure you get a good deal on your contract leasing rates is to avoid the new licence plates in the months of March and September. Also scout around and see if perhaps there are cheaper models of car to the one you are interested in, with a similar spec. Also check to see if there are any special offers on uncompleted lease agreements or returned cars. Don’t be afraid to ask the dealer to make sure you get the best car leasing deals going.
