Vehicle Leasing For Business And Private Individuals - We Reveal The Finer Points

Dissimilar to what many think, vehicle leasing is available to the public as well as businesses

. Most people or businesses thinking of taking out a car lease or vehicle leasing agreement, will probably end up going down the contract hire path (known as 'personal contract hire' where individuals are concerned).

Not only does a contract hire %link1% enable the lease customer to benefit from having the vehicle taken back at the end of the lease period, instead of being saddled with a depreciating asset, it can also provide a tax-saving option to individual company car drivers.

'Contract purchase', on the other hand (referred to as 'personal contract purchase' for non-business customers) provides the lease customer with the option of buying the vehicle, once the lease period is over, at a price agreed at the outset of the lease agreement. In some cases, the lease customer will benefit should the real value of the vehicle at the end of the lease period be higher than the value originally anticipated at the start of the lease.

However, for businesses, there are two other types of vehicle leasing: 'lease purchase', whereby the business commits to buying the vehicle at the end of the lease period; and 'finance lease' where the vehicle is sold at the end of the lease period, in order that the leasing company recovers the full acquisition price of the vehicle, with any balance from the sale going to the business.

For small businesses, credit can be hard to come by, even with a promising financial plan or verifiable commercial success. When it comes to securing vans however, obtaining credit is something the smart business-person does not have to worry about.

%link2% enables a enterprise to enjoy long-term access to the latest makes and models of vans, without having to meet the strict criteria needed for a financial advance from a bank.

Van leasing works on the idea of accessing one's own choice of van in return for a regular monthly fee to a leasing company. Van leasing costs are usually much cheaper than the equivalent monthly payments for a finance purchase agreement or loan, simply because they are based primarily on the amount by which each van depreciates during the lease period, rather than on a van's purchase price.

Depending on the needs of the business, van leasing can involve: a return of the vans to the lease company at the end of the two to four year lease period; the option to buy the vans once the lease period is over; or the facility for the lease company and the business to sell the vehicles at the end of the lease time, with the business benefitting from any returns over and above the balance of the original purchase prices.

by: ArticleSubmit Auto

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