2006-10-21 10:42:42 · 7 answers · asked by carbuyer 1 in Business & Finance ➔ Small Business
Not a lot
2006-10-21 10:44:09 · answer #1 · answered by Maid Angela 7 · 0⤊ 0⤋
I'm not in the car leasing biz, but this is my understanding:
There are many different types of lease. One of the most common is a Finance Lease. Here, the Lease Company charges the whole value of the car so you are paying interest, and the full capital value over the term. At the end of a Finance Lease, the Lending Company has received all the funds it wanted, you can then negotiate to end the lease for a small fee, and the car is yours.
With a Contract Hire lease, the Company doesn't charge you the full value of the car:- it retains a portion of the value of the car on its books as a "residual value." Because you are not paying back the full value of the car over the contract hire period, your monthly payments should be lower in direct comparison to a Finance Lease.
However, you don't own the car at the end of a contract hire lease. You then have choices: You can decide to give the car back to the leasing company, or they will usually be able to quote you an amount for the residual value that you can pay to own the car.
As far as I know contract hire is usd more for businesses rather than individuals. The contract hire payments can then include all the maintenance/service charges as well, and at the end of the lease the business can return the car and end the lease payments, renew the lease for an additional period at a much lower monthly charge (but retaining the service element), or take out a new contract hire lease on a new car.
The car companies seem to be coming up with "hybrid" schemes now so ordinary people can take advantage of this type of lease; involving "balloon payments" which is the final payment at the end of the lease representing the "residual value", to pay to take ownership of the car. I'm sure a car slaesperson will elaborate here...
2006-10-21 10:57:53 · answer #2 · answered by Dan H 2 · 0⤊ 0⤋
Leasing a car is alot more expensive its more of a short term thing
Contract hire is you sign up for a few years which ever you decide and just pay that each month............
I contract hire both my cars then it is renewed every 3 years so no m.o.t.'s to pay out for they also send you the road tax..........I think its the way to go...........you can contract hire a mini cooper brand new for 50 quid a week
2006-10-21 10:48:31 · answer #3 · answered by xXx Orange Breezer xXx 5 · 0⤊ 0⤋
With contract hiring you usually get the option to buy the car at the end of the contract !
2006-10-21 10:46:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
AT THE END OF CONTRACT HIRING YOU HAVE THE OPTION TO BUY THE CAR WHEREAS WITH LEASING YOU HAVE TO GIVE IT BACK
2006-10-24 10:32:47 · answer #5 · answered by Bob 3 · 0⤊ 0⤋
The insurance underwriters.
2006-10-21 10:47:18 · answer #6 · answered by grasshopper 2 · 0⤊ 0⤋
Contact peter@midlandautolease.co.uk and he will be able to tell you.
2006-10-23 02:05:41 · answer #7 · answered by Michael B 3 · 0⤊ 0⤋