WHAT'S ALL THE LEASING FUSS?

If your New to Leasing, then this is a good place to start! Today's Car/Van market (as volatile as it is) can certainly be a risky business if you don't know what you are doing. Putting all your hard earned money in to Vehicles isn't the best use of spare capital that you may have. Quite simply most Cars are depreciating assets, which frankly put, all too often means you lose money when you come to sell.

So where does leasing come in to all this?

Generally speaking the most comon forms of lease take in to consideration the final value of the vehicle at lease end. This final value when deducted from the initial value (at start of lease)enables you to pay only the difference plus interest meaning your monthly payments are more affordable. At the end of the lease (the most common- see below) the finance Company take the vehicle back and sell it (at their own risk) to recover the final value deducted at the beginning of the Lease.

Contract Hire

Traditionally, Contract Hire was only available to businesses, meaning that they had all the benefits of huge discounts passed on by the Manufacturer, meaning excellent Lease Rental Payments. More recently Private individuals are now able to Contract Hire also. At very Low rates this is now a very popular form of Leasing for both individuals and Business The major benefits most desirable to Customers are:

Low Initial Outlay

Cash flow is a major factor for all. Paying a low initial lnitial payment simply means that one is able to invest surplous money in to more productive sources. Typically the most common initial outlay is equivalent to 3 Payments.

Low Monthly Payments

Huge discounts given by manufacturers are able to be absorbed in to a lease without the Manufacturer being seen to distress selling their products. The low monthly payments entice more people to take up leasing meaning increased market share without affecting too greatly the residual values at lease end

No Residual Risk

At the end of the Hire period the vehicle goes back to the funder leaving no Residual risk to the Hirer.

Please see more information related to contract hire More Contract Hire Info

PERSONAL LEASE (PCP)

This form of lease is the typical lease found within car dealerships. It takes the very best of Leasing ie Low Monthly payments and the avoidance of residual risk, and the very best of Ownership meaning the option to own the vehicle at lease end. Although this is a good comprimise between ownershi and leasing it generally does not carry the same anount of discounts, meaning that they are more expensive

The major benefits most desirable to customers are:-

1) More Flexible form of Lease where you can settle(finish early) without too much fuss

2)Affordable Leasing payments due to dedction of the finanl value at start

3) The option to own the car at lease end(subject to conditions)or hand vehicle back

Please See more information relative to Pcp's More PCP Personal Lease Info