Finance Options in Car Leasing for Personal Use

Owning your own car must be ranked among the top necessities of everyday life in this fast developing world. Although buying a car has its advantages, it also has its ugly drawbacks. First of all, monthly amortization is higher than the monthly lease, plus car dealers usually ask for a significant down payment so your initial expense is already high. More importantly, since car payments are usually amortized over a 4 to 5-year period, depreciation of its cost, which is about 35% in its first two years, becomes a headache down the line; you almost always pay more within the said period than what the car would actually cost.

An alternative method to getting a car is by Car Leasing. It offers very little or no down payment, plus you get to own a new car every 3 or 4 years. There are some finance options that is advantageous when owning a leased car for personal use. For business use however, it is recommended to choose between Contract Hire, Contract Purchase and Finance Lease. Do not hesitate to inquire about Contract Hire Special Offers for additional transactions. Listed below are the recommended options of car lease plans for personal use.

Hire Purchase - this works like the usual car payment when purchasing a car. That is, you pay a down payment and depending on the amount you initially give, your monthly lease payments are then calculated. Of course, this is at a lower rate since it is a lease. You get to own the vehicle after the contract ends.

Lease Purchase - the down payment you give is calculated as monthly payments in advance. This is lower than Hire Purchase and the balloon payment is included in the calculation, this also result to a reduced amount of monthly payment, therefore increasing your savings.

Personal Contract Hire - this car lease option is tailor-fit for individuals newly hired by a company offering a car allowance. This is also beneficial for those who want to forgo the company owned car plan and start their own personal Car Leasing plan.

Personal Contract Purchase - this product was designed for individuals who want to finance their car while still keeping the advantages of a company car lease. This option though, does not offer tax advantages.

It is recommended that you compare and contrast between Lease vs Buy options when trying to procure a vehicle so that you will not end up regretting your decisions down the road.