Car leasing can be quite a difficult task both for those doing it for the first time, or those renewing their lease. So much goes into the process that it is sometimes impossible to keep the different types straight. For those looking to enter a new lease or those looking for a quick reminder of the definitions, here are the different types of leases to look for.
Contract Lease: Companies that are in the lease business often do not see the vehicle after the contract is up. This type of lease gives them the option to purchase the vehicle and claim ownership. Instead of the lessee purchasing the vehicle, it goes back to the company who decides whether to send it back or keep it for a future lease.
Leaseback: This process involves leasing a car directly back to the company from which it was purchased. This allows the company who purchased the vehicle to free up the capital that would normally be tied up in the product.
Contract hire: A contract hire involves an independent company purchasing a vehicle and drawing up a contract with a business or individual. The company itself takes care of expenses, depreciation and also is in charge of the after the lease. This is a great option for low monthly payments and a temporary transportation solution.
Finance lease: Think of this as a lease that the driver and the company are in together. The driver pays the company in monthly installments, while the leaser covers taxes, expenses, depreciation risks, and insurance. These types of change from company to company, making it a potentially great way to get the best lease possible.
Car leasing can save a great deal of money and may be a much better result than purchasing a new car. It is also important to remember that these types of leases differ so greatly even within the broad definition that it is recommended that you consult with your financial expert before making your final decision.
Working with knowledgeable and experienced professionals about leasing a car will save you time and money. When you are comparing car leases, you can find the most affordable programmes quickly and easily!
Source: http://cararticles.net/car-articles/the-most-important-car-leasing-types/
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