Feb 09 2012

Car & van leasing is something people do to save on the cost of having a vehicle to drive. Dealers who also sell cars, offer this option as an alternative. It is used by businesses that want to have vehicles for employees to use. The average length of time a lease lasts is from two to four years. The vehicle is returned and the dealer then sells it as a used car or van.

Some terms imposed by the rental agreement are a limited number of miles per year the vehicle can be driven without financial penalty and a penalty for ending the lease early. The usual number of miles stipulated per year is ten-thousand, but can be more. A lease that includes maintenance, also called a contract hire, will cost more. All costs except insurance coverage and gas are covered. The cost goes up, of course.

The vehicle goes back to the dealer at the end of the lease. The dealer sells it to someone after that. The lessee does have the option of purchasing it. However, that individual usually wants a new model to drive at that time.

Payments on a lease are lower than payments on a new car. The lessee does not have to be concerned about depreciation in value. He or she can drive a new model every two, three or four years depending on the terms.

The advantage to the lessor is that at the end of the lease, he or she has collected all the payments and still owns the car. Payments are computed based on something called the money factor. The cost to purchase the vehicle at the end of the lease is also computed at that time.

The type of contract for leasing a vehicle is referred to as a finance lease. The financier buys a car. The customer leases it from a car dealer. Monthly payments are generally lower. The lessee has monthly payment just as if buying a new car or van. The ownership remains with the car dealer or lessor rather than the lessee.

Car leasing provides you with the opportunity to drive an exquisite vehicle every thirty six months. You can find information about the best van leasing firm in the United Kingdom, today.

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Source: http://freeonlinemechanic.com/2012/02/09/automobile-van-renting-was-easy

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