Contract Hire Leasing: The Pros and Cons of It

Contract Hire Leasing: The Pros and Cons of It

In case you’re thinking about purchasing a new car for yourself you are after for choice by the different finance alternatives available. However, one of the most popular alternatives/choices is contract hire leasing – because it often proves the easiest to manage and also the most cost-effective.

Contract Hire Leasing – What Is It?

  • Contract hire leasing is a well-known type of vehicle leasing that is a straightforward path for you to get in the wheel of a brand new car/vehicle.
  • Contract hire leasing is very flexible – you’ll be allowed to choose from a range of vans and cars, with a contract length that suit your needs.
  • Additional products like (1) insurance, (2) maintenance cost/packages etc. can also be made into your monthly payment.

Pros and Cons of Contract Hire Leasing

The pros and cons of contract hire leasing are a matter of perception. What is right for one person might not be right for another and vice-versa.

  • By taking out a contract hire leasing you never take ownership of the vehicle. This may create a problem for someone, but it is a benefit for others who really like the idea of being able to return the vehicle/car and leave without making an inflatable instalment toward the end of the contract or exchange the car for another one.
  • Some contract hire leasing agreements likewise contain maintenance packages – meaning you have to stress about is comprehensive car insurance, putting fuel in the tank, tyres etc.
  • Contract hire leasing offers the benefit of settling a significant number of your motoring costs – you know precisely what you should pay and when you need to pay it, helping you to spending plan.
  • On the flipside you must return the car towards the end of the contract – there is no option as such to buy, as there is with a PCP (personal contract purchase) agreement.
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