Different Car Leasing Options

The popularity of Car Leasing has increased over the years. Most of the companies in this field offer a number of options for car leasing, including Contract Hire, Personal Contract Hire, Personal Contract Purchase, Contract Purchase, Hire Purchase, Lease Purchase, Finance Lease, etc. These companies also offer special packages such as Contract Hire Special Offers for car leasing.

The Contract Hire with maintenance lease is a simple operating lease that includes complete maintenance, servicing and road fund license. This type of lease offers a complete fixed cost motoring package. With this lease, your finance rentals can be offset against taxable profits.

Personal Contract Hire (PCH) is a product for individuals who prefer to leave a company car scheme or are joining a new company that provides a car allowance. This option enables you to finance a car using the most popular funding method used by companies. You can opt for PCH with or without a maintenance package.

Personal Contract Purchase (PCP) is a product which lets individuals to finance their vehicle whilst still retaining some or all of the benefits associated with a company car. The agreement is written in individual’s name and the normal "benefit in kind tax liability" does not apply. This facility can also be offered to employees who are not normally entitled to a company car.

Hire Purchase is another popular way of purchasing a vehicle. It gives you tax advantages for businesses. This is an extremely cost effective method of borrowing if ownership is a priority for you. It also gives business users a chance to claim tax relief on the interest charged.

Lease Purchase is similar to Hire Purchase but has greater flexibility. In this option, the initial deposit is expressed as monthly payments in advance. The initial deposit is much lower than traditional Hire Purchase and a final lump sum is usually included.

If you need full use of a vehicle for minimum outlay but do not wish final ownership then Finance Lease can be one of the most cost effective options. With it, the rentals can be offset against taxable profits. The vehicle is sold at the end of the lease. The sale proceeds after deducting a nominal sum are refunded to you as a rebate of rentals.