What is Car Lease Finance?

Car lease finance is that where you lease the car rather than purchase it. You still make monthly payments, but you don't own the car, and often the company who is leasing the vehicle to you will cover the cost of regular maintenance. Car finance lease can be a good option if you only want a car short term, or if you don't want to be burdened by ownership.

There are also advantages to be had when it comes to tax considerations, and most companies will advise you on how you can save money by leasing rather than purchasing.

Although this is normally an option taken by companies who want to provide their staff with transport but not deal with depreciating, aging vehicles, there can be some benefits for the private individual. When you come to looking at the methods of obtaining car lease loans, you will find that there are many options, each with different requirements to qualify, and each with different pros and cons.

Types of Car Lease Finance Options Available

Personal Contract Purchase is a type of car lease finance that comes in various periods and offers the option to purchase at the end of the lease period. Most companies offer periods that range between two and four years, so clearly this is not the one to go for if you just want to hire a car for a two week vacation. You are not obligated to purchase the car at the end of the period, so there is some very nice flexibility built into the contract. As previously mentioned, these contracts can come with standard or optional maintenance, which can save running costs in the long term.

Personal Contract Hire is a type of car lease finance that is most often available to those who work for companies who include a transport allowance in their employment contract. Most companies will require proof of your company transport allowance before entering into an agreement with you.

Business Contract Hire is like personal contract hire, but you get several added bonuses, like monthly V.A.T deductions, and fixed interest rates. This option is particularly attractive to businesses because of the relatively small amount of capital expenditure involved. You do have to be a V.A.T registered company in order to reap these rewards, however.

Finance Lease is essentially another way of purchasing a car. Car lease finance does not include a maintenance contract, and when the lease period is finished the lessee becomes the owner. The advantage to getting car lease finance is that you can get tax advantages over those who are simply buying their cars.

Continue to: Agencies that Offer Car Lease Loans

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What Is Meant By Car Lease Finance?

Types of Car Lease Finance Options Available

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