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Car Leasing and Contract Hire have become the prefered methods to financing new and almost new vehicles for companies, and increasingly for private individuals. So is it right for you? and what are your options?

Firstly consider the key advantages:

You don't have to buy the vehicle suffering its depreciation when new
Usually you won't have to maintain it either. Maintenance can be provided
You won't need to tax the vehicle
Payments on contract hire include VAT, 100% of which can be reclaimed if the vehicle is solely for business use. Otherwise 50%.
Simply return the vehicle at the end of the contract, have another one

But is there a downside?

Well NO, not really. Although with Contract Hire you don't get the option at the end of the contract to buy the vehicle. Not so with a Finance Lease or Personal Contract Purchase.

Both these schemes allow you the option to purchase the vehicle at the end of the contract. This can be a good idea assuming the vehicle is still useful and is offered at a reasonable price.

Can anyone lease or contract hire a vehicle?

Yes they certainly can. However you will need a reasonable credit rating to qualify for finance leasing and personal contract hire. You will also need to be able to provide proof of your income i.e Payslips if you are employed and bank statements if s-employed.

If you are a new business start up or have had credit difficulties you would be restrited to a non status contract hire scheme. The monthly payments are the same but deposits are higher, up to 6 payments in advance.

Our sister website Car and Vehicle Leasing UK contains further information on leasing and contract hire, offering all finance options including Non Status Contract Hire.

To visit the websites of many other car leasing and contract hire companies and to make enquiries and direct online applications, please visit our Car Leasing & Contract Hire category.