Thursday, 1 November 2012

Leasing A Vehicle Has Several Advantages Over Purchasing One

By Olive Z. Shinault


Car leasing is actually liked by many companies and individuals today since it could save a lot of money over time when compared to investing in a car outright using a loan. For those who have a poor credit history this remains possible as this article describes.

For those who have recently started a business or if you're an individual with a bad credit rating, you are still eligible for the various car leasing programs available. Car plus van suppliers provide vehicles on lease basis, providing leasing services, under the non status car leasing agreement. The company can be a vehicle dealer or a private lending company or perhaps agent that links individuals in need of car leasing bad credit to the right source. The contract is generally agreed upon in line with the following types of contract agreements.

1. Contract hire

2. Flexilease

3. Ongoing rolling contracts

4. Hire purchase

Contract hire

This kind of contract will be suitable for individuals or business people who actually search for brand new vehicles once in every 3 years. The provider offers the vehicle right after the customer makes an upfront transaction equivalent to the 4 months rental value. Clients can get a vehicle or a van in different models such as Fiesta, Corsa, Astra and Focus which are Six to twelve months old.

Flexilease

This option would be a perfect fit for business owners who wish to change cars or vans every 12 months to 18 months. As part of this type of contract, the supplier would be including the road fund license that would hold good for the whole time period of the agreement. When compared to the other forms of agreement, Flexilease offers the choice of ending the contract within Nine months of signing the arrangement. In addition to the car models pointed out in the contract hire form, models such as Octavia, insignia and Mondeo are also available on lease. Within this form of contract, the customer asking for the leasing service needs to make several in advance payment

On going rolling contracts

This type of contract is great for those who haven't experienced any county court judgments (CCJ) within the last 6 years. This particular contract is likewise readily available for limited businesses that have maintained up to date accounts having positive value. Within this agreement type, the customer needs to create a refundable security deposit at the start of the agreement. In this kind of agreement, the customer gets the option of changing vehicles once in every six months. Thus there is no need for any agreement with the company on the aspects related to car maintenance during the leasing period.

Hire purchase

When you are looking to lease a specific or perhaps an older car, this option is a perfect fit. Being a client, you are eligible to invest in a car that is six years old and it has done a mileage of 70000 miles. The vehicle should have less than three prior owners. There's an upfront deposit that should be paid. This deposit is generally equivalent to four month leasing rates. This option has to begin from a reputed dealer and the funder does not have the rights to finance left hand driven cars. In addition to the upfront fees, there is an added administration fee charged by the providers offering this kind of contract.

By studying the different features available in the 4 different agreements, you could choose the option that provides the best value for the leasing rates charged.




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