Car lease finance is the latest emerging concept in the car financing business. It is fast catching up, as it is very useful on the commercial. In the commercial world where the need for transport is fast growing and time is a constraint this is the best concept for major firms and multinational companies.
In the case of car lease finance the physical ownership of the vehicle is with company or the employee. Where as the will be registered in the name of the person who has given the vehicle for lease. This concept is basically useful for the big companies where they use the vehicles for employee transport and they are not interested in purchasing the car.
The main advantage of the Car lease is it has the tax benefit as the physical ownership doesn't lies with the company so they can still show this as an expense and get tax exempted to that amount.
There are different methods of Car Lease where they qualify on the pros and cons. Personal contract purchase is a method where the physical ownership of the vehicle will be transferred at the end of the lease period to the lessee but in this the lease period will be anything not less than 2 years of period.
Personal contract hire is another method, which is used by most of the companies for the transport of the employees, and this will require proof of your company transport for getting into an agreement.
Business contract hire is another method where you can enjoy many value added services like VAT deduction, and fixed rate of interests etc.
Finance lease is another method where you take the car on lease and at the end of contract period lessee becomes the owner but the difference between the Purchase contract purchase and Finance lease is that the maintenance cost needs to bared by Lessee for Finance lease.
Leasing has two benefits:
1. Can use the car with warranty and seldom benefits including the maintenance.
2. Can get a better, large and well-equipped car than the one, which we can afford to buy.
Just like the Finance even Leasing also have its own payment methods like monthly, annually or a single time payment.
The Car Lease Finance is divided into two parts i.e. depreciation and finances. The lessor calculates depreciation and the finance depends on the rate of interest that is taken for lease.
NetCars is one of the UK's leading Car finance websites. First established in January 2000, its mission is to become the number one site for Car Leasing and Van Finance searches.
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