Stakeholder - Lease4Less
Exploring Vehicle Finance Options
Finance leasing is an option usually exercise by VAT registered companies and organisations. It is usually recommended to companies where a moveable asset (vehicle) is bought from a supplier.
Contract hire, often referred to as car leasing, is perhaps the most popular form of a vehicle leasing contract available on the market today.
Contract Purchase is the ideal choice of businesses who want a high value vehicle with the option to buy on completion of the contract; but without any of the depreciation risks.
Generally, a lease purchase deal is very similar to a PCP agreement. After making an initial deposit upfront, instalments are calculated on the difference between the vehicle's retail cost and the expect residual value come the end of the contract.
Personal contract purchase, or PCP, works on the same premises as PCH (personal contract hire) but with a significant difference. On completion of the deal, there is a voluntary balloon payment you can choose to fulfil in order to take full possession of the vehicle.
Personal contract hire (PCH) is fundamentally equal to ordinary contract hire but it is only available to private individuals. This represents the most common form of leasing and is what most people refer to as 'car leasing'.