What is Car Leasing
Car leasing is a method of paying for the ‘use’ of a vehicle over a specified period of time. It’s similar to renting, but instead of hiring a vehicle for, say a day, leasing typically lasts for 24 to 48 months.
When leasing a car or van, you don’t actually own the vehicle, you are simply hiring it – which brings many benefits.
How does car leasing work?
The vehicle you wish to lease will have a retail price – that is the money it would be worth if it were sold at that point in time. However you’re not buying the vehicle, you’re leasing it – so another value of the vehicle is determined.
This is the ‘residual value’, which is an estimate of what the vehicle will be worth at the end of your lease – after depreciation is taken into account.
Your monthly payments are then based on the difference between the retail price and the residual value. Therefore you don’t pay for the full price of the vehicle, hence the lower monthly payments (compared to financing the entire cost of a vehicle).
At the end of your lease, you simply return the vehicle to the leasing company.
You will have the option of taking out a lease on another new vehicle. Or depending on what type of contract you have agreed to, you may be able to keep the vehicle.
How will car leasing benefit you?
Leasing means that you don’t pay for the full price of the vehicle. Therefore you’ll save money each month by having low monthly payments – compared to other finance such as loans and HP.
You are basically paying an estimation of the depreciation – something that you have to pay for anyway if you were to buy a new vehicle. Only with leasing, the depreciation risk is with the leasing company, not you.
In a market like today’s, leasing is ideal as you know exactly what your vehicle is going to cost you each month – enabling you to budget accurately.
Vehicles are deprecating massively at the moment, and we all know its best not to be sitting on an asset which is losing money.
And if you’re lucky enough to have savings to buy a vehicle outright, wouldn’t keeping them in a high interest savings account be a better option?
Benefits of Contract Hire for businesses
There are many benefits when leasing a fleet car or van, including improved cash flow and removal of vehicle depreciation risks.
Our team of contract hire specialists can advise you on the benefits of fleet vehicle leasing to your business.
With contract hire vehicle leasing, you are in control – with fixed monthly costs for the duration of the contract and optional maintenance cover, contract hire is an affordable, controllable option for fleet vehicle funding.
Call us now on 01303 252 086 or request a quote via our quick and easy contact form.
Rental Payment Solution – Reasons to Flexi
Don’t sink your cash into products that will depreciate. Rental finance with Flexirent allows you to update your rental equipment as the latest technology rolls out.
Reasons to Flexi
1. Manage your budget
Flexirent’s rental finance agreements allow you to choose from 12, 24, 36, 48 and 60 month terms to select a time frame and monthly payment amount to suit your budget. And, with no deposit or set up fees required, you can save your money for other important payments, like your mortgage. With transparent terms, fixed monthly payments and no hidden costs, Flexirent allows you to easily manage your budget.
2. Get a totla solution
If you take out rental finance for more than one piece of equipment you can bundle all payments and terms into one agreement. Rent the latest laptop, printer, hard drive, software and just pay one fixed low monthly payment. You can also add on equipment at any stage during your agreement to be included in that payment.
3. Unique services
Because you rent (as opposed to own) the equipment you can enjoy peace of mind in case something goes wrong
4. Tax benefits
If you use your Flexirented equipment for business purposes your rental payments can be up to 100% tax deductable, making the actual cost less than the actual payments*.
5. Enjoy flexible End of Term options
Once your rental agreement has ended, Flexirent offers customers a number of different end of term options.
we are happy to quote all customers individually giving us the ability to reduce costs for you wherever possible. So if you’re looking for a vehicle longer than a monthly car rental whilst also cutting the costs, Flexi-rent offers customers very competitive rates. Our tailor made deals change weekly due to high demand of vehicles, so please make sure you check the deals we have for our Mini-lease vehicles.