Contract buy rental agreement lease and finance leasing are the main

Contract hire

You need enough research to find out which car leasing option suits your type of work, business or personal circumstances do.

Contract, rental, purchase, lease and finance leasing contract are the main types of car leasing options available. Contract hire is a long-term lease arrangement, which may be decided for business and personal users. This type of car leasing is best for those who prefer small payments pay each month, there is no risk of depreciation or the problem of the disposal of the car, for the user.

It is the finance company that offers the contract hire service, buys the car, takes the risk of possible depreciation or loss and assumes responsibility for the disposal of the vehicle at the end of the term of the contract. The contract is between 2 and 5 years, and the customer has to a credit check. Each customer can a tailor-made contract according to his individual needs and VAT registered companies can claim half VAT charges. Vehicles for purely business use can claim any VAT charges. Contract of sale

Contract of sale is a form of car leasing decided for by companies or organizations. Hire expensive cars and want to be given the choice either passing the car at the end of the term of the contract, or to buy the car at the end of the period. At the end of the term of the contract that can store you buy the car with a balloon and claim ownership of the car, or it may return the car and go for a new contract for another car.

Lease

Lease is a form of car leasing and is used by the company. Companies who want to generate from the sale of the vehicle to the market value to a finance company, the capital freely in general go for this type of contract. The finance company rents again on the same vehicle on the company that sold it, and this is done with the VAT in the eye. This time is the option contract hire agreement.

Finance lease

Finance lease is a kind of commercial leasing and the use by companies that lease a car for a fixed period of a finance company that owns the car. The client has to pay monthly instalments with interest, and this covers the cost. As finance leases is included, the company that goes for the contract must pay taxes and services in the cost of insurance. Finance lease possible conditional sale or hire-purchase type. Depreciation and resale risks can the customer place.

Source: http://www.culturedefense.org/contract-buy-rental-agreement-lease-and-finance-leasing-are-the-main-types-of.html

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