Car leasing is most often related to the needs of business. Yet automobile leasing can also be the choice of many private car drivers. So why is this? And what are the benefits?

* Car leasing is usually favoured by people as a means of using a company car allowance given by their employer with out having to pay company car tax. With Private Contract Purchase the person may also purchase the car on the end of the agreement, an option unlikely to be obtainable with a company car.

* Secondly, first-time buyers or those with very bad credit scores often discover car leasing an easier path to car usage than attempting to secure a car loan. The relatively cheaper car leasing monthly payments compared with loan repayments also tend to benefit these individuals. Be warned though that there can be penalties for those who fail to maintain the month-to-month payments agreed under the terms of the lease. Automotive leasing may also have the advantage over finance agreements in that there is no danger of being a victim of a car’s depreciation and finding yourself at the end of the finance term not having the ability to sell the car for enough money to pay back the finance company.

* A third category belongs to those individuals who simply want the convenience of car leasing, whether it be the regular month-to-month payments or the better reliability related to a new car.

* A fourth category merely loves to be seen about in the latest models for a relatively modest month-to-month layout, and why not you might say.

Of the various kinds of vehicle leasing obtainable, contract hire remains the most well-liked, accounting for about 50% of the market. It’s simple to see why. Contract hire is what most people think of when they speak about automobile leasing. Under contract hire, the client leases a vehicle from the leasing company for an agreed interval and an agreed monthly price, after which the vehicle is returned to the leasing company.

One of the reasons for the high take up in contract hire is the low level of entry into the scheme and the comparatively low amount needed for each month-to-month payment thereafter. This compares favourably with the terms of standard finance agreements, and as such is of benefit to those companies which rely heavily on cash flow. A second crucial method in which contract hire may help businesses is to allow those which are VAT-registered, to claim back VAT on their lease payments.

A 3rd benefit of contract hire car or van leasing is that costs are controlled and due to this fact simpler to plan over a long period. On the end of the contract interval a replacement car is delivered, the previous automobile is collected, and the month-to-month payments continue as before. There aren’t any worries about depreciation, about vehicle disposal or about trying to negotiate the purchase of a brand new vehicle.

The vehicle leasing experts at lease4less are committed to providing impartial advice, and the very best contract hire deals to their customers. They have a massive range of available vehicles, and prices that leave the competition standing.