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What is leasing?

May 4, 2020

Contract Hire

Leasing is a common funding method in the UK and the most common variation of this is Contract Hire. The user hires a car for a set period of time and pre-determined maximum mileage at fixed monthly rentals. There is no option for the hirer to purchase the vehicle and at the end of the contract it is returned to the leasing company. people directly associate it to the rentals they pay, but usually have little knowledge about what leasing actually is and how the figures they pay are associated to the value of their vehicle and the finance applied.

In this video we will cover:

Why do the biggest companies contract hire and largely do not choose to own? How profitable businesses choose to reinvest money in business and not in depreciating assets Why you can afford usually better cars on contract hire than outright purchase Why and what makes contract hire quite tax efficient in some of the elements

Advantages such as not paying for the car at once, not having the worry about devaluation and depreciation. The advantage of regular payments and reduced admin and why companies prefer to remove the risk and focus on core activities. Advantages of Expert Support and easy use support services. Plus having road fund licenses sorted in the first year There are many other elements covered too.

Introduction imagery created by Jason Goodlad of Hawk Eye Vision

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