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Company and personal car leasing and contract lease hire
Car Leasing Explained.
So what is a Lease?In its simplest terms, car leasing is just an alternative way to finance a car or van.
When you lease a vehicle, the only money that is required up front is your first payment, which is usually equal to three monthly payments.
The difference between car lease hire and conventional financing is as follows: With leasing, your payments are based only on the portion of the vehicle's life that you actually use, or the depreciation. The depreciation is determined in parts; by the length of the lease, the number of miles you drive per annum and the condition of the vehicle at the end of the lease. A conventional loan bases payments on the full value of the vehicle.
As a rule of thumb, you can drive a more expensive vehicle - with a lower payment if you lease. Of course, you have to give the vehicle back at the end of the car lease term, but you can if you want, purchase it at that point. Car leasing contracts are available for most makes and models of vehicles including, Mercedes-Benz, BMW, Audi, Vauxhall, Peugeot, Ford, Toyota, Nissan, Fiat, Renault, Lexus, Landrover and others.
Car leasing rentals are based on annual mileage so you must try and be accurate in your estimation. If you overestimate you may end up paying too much. Underestimate you may face 'excess mileage' charges. For example, a 36 month lease at 12,000 miles a year gives you 36,000 miles over the term of the car lease. If the mileage on the vehicle is over 36,000 miles when you return it, you will be penalised per mile depending on your lease company.
When you lease a vehicle you don't actually own it! You drive it and maintain it just like you own it, but the vehicle is actually registered to the bank or leasing company that you are leasing from. At the end of the car lease you have to hand the vehicle back. As well as any excess mileage you will have to pay for any damage to the vehicle. You are expected to return it with only 'fair wear and tear'. This can sometimes be a gray area, but stonechips are allowed but dents aren't.
At the end of the lease you can then take out another car lease .