Lease, Hire Purchase or Car Loan - The Choice is Yours

Executive Summary about Hire Purchase Cars by V. Jain

You need money to purchase a house. Car is another item which requires a large expenditure. You can get a car on lease, hire purchase or loan. Not all dealers offer cars on lease. You will have to search for car dealers who offer cars on lease. After the expiry of the tenure of the lease agreement, you will have to return the car to the dealer.

If you want to retain the car, you can go for hire purchase. Many dealers sell cars on hire purchase. Car loans can be obtained from banks, financial institutions and private lenders. It is not a difficult thing to borrow money to purchase a car. Lenders will readily offer you a car loan if you could show your income proof. It is easier to obtain a secured car loan than an unsecured car loan. The rates of interest on car loans are lower than the interest rates on hire purchase.

10 Benefits of Using Contract Hire to Finance Your Company Vehicles

Executive Summary about Hire Purchase Cars by Matthew J James

Contract hire is a way of a VAT registered business leasing a vehicle, for a set period of time, for an agreed annual mileage, at a fixed monthly payment. The monthly rental amount is determined by the cost of the vehicle, the rental period and expected depreciation. Once the contract period ends, the business simply hands the vehicle back to the leasing company. This type of vehicle leasing is usually only available to businesses that have been trading for more than two years, but some Contract Hire companies have a scheme for new businesses.

Here are the top 10 reasons that businesses should consider Contract Hire:

1. Free up capital -

By leasing a car or van rather than buying, your financial resources can be freed up.

2. VAT Benefits -

one of the other main benefits to Contract Hire is the VAT incentives. The entire VAT payable on the finance can be claimed back if the vehicle is only used for business purposes, and half the VAT can be reclaimed if the vehicle is made available for personal use as well as business use.

3. Accurate Budgeting -

Even servicing, replacement tyres and exhausts as well as vehicle tax can be included in the monthly payment.

4. No Depreciation -

Depreciation is suffered by all vehicles, and is the loss of value over a given period of time. By then end of the first year, the average vehicle will have lost up to 40% of their value, and 60% by the end of the third year.

5. Freedom of choice -

Contract Hire Leasing can allow your business to choose from a wide range of makes, models, specifications and colours.

6. Reduced Administration -

Contract Hire reduces the administration usually associated with vehicle management, freeing up time which can be better spent.

7. Enhances Company Image -

Up to date, well maintained vehicles can improve the image of your business with existing and potential clients and customers, and you may be able to afford a more prestigious car or larger van than you thought.

8. Annual Reviews -

As each vehicle is subject to an annual review, it should be possible to increase or reduce the mileage allowance, or to add or remove the maintenance package.

9. Benefits for Larger Fleets -

For businesses with a large fleet of cars, it may be possible to offset the vehicle mileages against each other depending on the Contract Hire company. As the annual mileage limit is usually 10,000 miles per year, a high mileage vehicle covering 15,000 miles a year can be offset against a lower mileage vehicle covering only 5 000 miles a year.

10. Worry Free Motoring -

Additional options such as breakdown recovery and maintenance can be factored into the monthly rental charge, and so do not need budgeting for, or renewing.