Types of Car-Lease Contracts for Personal Use

Car leasing in the UK is simple and easy to apply for and provides a lot of different options in what type of leasing contract you would need. This article provides detailed information on the various options available for car leasing and how to choose the correct option for personal or business use.

These are the most popular car leasing options.

Hire Purchase

Hire Purchase - Types of Car-Lease Contracts for Personal Use

Hire purchase is seen as a straightforward option for buying a new or used car when being on a tight budget. With this option, the buyer will pay an agreed deposit and then pay off the remaining owed amount in monthly instalments. The buyer has the option to also purchase the car when their hire time is up if they do not wish to return the vehicle to the dealership.

This is a quick and easy contract to arrange with dealers and hiring companies with up to 60 months to pay the vehicle, depending on the company and the price of the vehicle. This is especially a great option if the person does not have a large amount to pay as a deposit.

Personal Contract Hire

Personal Contract Hire is a long-term rental perfect for individuals who don’t want to buy a car and rather want to heir and move on to a different car when the agreed contract term is over. There is no option of buying the vehicle once the contract is finished and should only be seen as a straight hiring contract.

This is seen as a low-risk option for those in need of a vehicle as the car can be used without any obligation to warranty expirations or future re-selling price. The instalments are also less than with most hiring purchases and offer flexible agreements with most companies and dealers. These contracts usually have many options in the types of cars available.

Personal Contract Purchase

Personal Contract Purchase - Types of Car-Lease Contracts for Personal Use

A personal contract purchase is a perfect option for flexibility in whether you would Mabey want to keep the car at the end of the contract or return it. THE contract calculates the value of the car at the start of the contract and is paid off until the end of the contract. This provides a chance to use a car and see if it’s what you want before purchasing.

This type of contract has lower monthly payments than a standard hiring agreement and requires a low deposit to put the agreement into action. A fixed amount is paid monthly for a set time, and then the car can be either purchased or returned to the dealerships.

All the contract options on this list are available from most hiring and leasing companies in the UK and can be a great way to get a car if you cannot purchase it outright.

Related posts