The ultimate guide to Contract Hire
Are you looking to lease a car but not sure where to start? Look no further – this is the ultimate guide to contract hire.
Contract hire, also known as lease financing, is a popular option for individuals and businesses looking to drive a new car without the commitment of buying it outright. With contract hire, you enter into an agreement with a leasing company to use the car for a predetermined amount of time, usually two to four years, at a fixed monthly cost. At the end of the lease, you simply return the car to the leasing company and have the option to lease a new one.
There are several benefits to contract hire. For one, it can be more affordable than buying a car outright. Since you are only paying for the car’s depreciation during the lease period, your monthly payments may be lower than if you were to finance a car purchase with a loan.
Contract hire can also provide flexibility. At the end of the lease, you have the option to upgrade to a newer model or change to a different make and model altogether. This can be especially beneficial for individuals or businesses who want to stay up-to-date with the latest car technology.
In addition, contract hire can offer convenience. All of the leasing companies Key2Lease are partnered with offer maintenance packages with their leases, so you won’t have to worry about the added cost and hassle of regular car upkeep if you choose to include this within your agreement.
When considering contract hire, there are a few things to keep in mind. First, consider the mileage allowance. Most lease agreements come with an annual mileage limit, typically between 5,000 and 35,000 miles. If you exceed this limit, you may be charged a fee per excess mile at the end of the lease. Be sure to choose a mileage allowance that accurately reflects your expected driving habits.
Another factor to consider is the end-of-lease process. At the end of the lease, you will be responsible for returning the car to the leasing company in a fair condition, (this is confirmed by the BVRLA's Fair Wear and Tear Guide - available upon request). This allows scratches and dents of a certain size, but anything outside of the guidelines may be chargeable.
Overall, contract hire can be a great option for individuals and businesses looking to drive a new car without the commitment of buying it outright. With its affordability, flexibility, and convenience, it’s no wonder contract hire is gaining popularity.
If Contract Hire is the way you wish to acquire your next vehicle, CLICK HERE to contact the Key2Lease team and see how we can help find you a fantastic deal.