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Car Contract Hire Guide

If you are interested in car contract hire then you may be thinking that the process involved is quite intimidating, but this is not the case. We’ve pulled together some information for you on the different types of car leases you may come across to help you out.

 

What is contract hire?

Contract hire, more commonly known as leasing, is a contract you undertake with a car hire company where you agree to pay for the car on a monthly basis for a specified number of years. It has grown in popularity as a way to have a car in the last few years, as:

 
  • Monthly costs are generally lower
  • Less down payment is required than when buying a car
  • Vehicles are new and so tend to be covered under the manufacturer's warranty
  • You can change your car for a newer model every few years

If you think that lease hire cars UK might be for you, then you need to think about what type of car lease will work best for you:

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Closed End Car Lease

A closed end lease is sometimes referred to as a walk-away lease and is one of the most popular options for many car contracts hire customers these days as it offers them a low monthly payment (if they have a good credit history). A closed end lease features:

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  • Higher monthly payments than a closed end lease
  • No mileage restrictions
  • Payment for depreciation of the vehicle at the end of the lease (which can be affected by excessive mileage or excessive wear and tear).
 

Single Payment Lease

If you have the cash available, you might want to go for a single payment lease where you pay the full cost of the lease up front. This means that you:

 
  • Don’t pay any monthly payments and so rid yourself of monthly interest payments
  • Gain significantly lower finance payments
  • May be able to negotiate a better purchase price as it is a less risky option for the dealer.

Option to Buy Lease

Some car lease deals offer the option to buy the car at the end of the lease. In order to do this you will need to:

  • Make sure the price of the car at the end of the lease is listed in the lease contract before you sign it
  • Ensure the negotiated rate is the same as or lower than the cars market value.
  • Ensure you have the cash or finance in place to purchase the car at the end of the contract

If you are interested in finding out more about car contract hire, or our business contract hire cars, then please get in touch with the team at Amber Vehicle Solutions today.

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Posted on 7th January 2019 at 9:49 AM

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