Finance Lease For Cars

Car finance leasing offers an engaging and effective way to fund full electric and plug-in hybrid cars and all types of commercial vehicles.

Although there are similarities, vehicle leasing in the U.K. is frequently mistaken for Contract Hire. Car leasing is a unique funding option that offers a cost-effective solution, especially for assets such as electric cars and plug-in hybrid vehicles, which tend to have unpredictable depreciation rates that vary greatly. This highlights the importance of thoroughly understanding all available funding options, which AVC will happily develop for your review.

Contract hire and leasing payments are determined based on the car's future value, with significant manufacturer discounts included in the pricing. The main distinction lies in contract hire, where the vehicle is subject to specific mileage and condition requirements upon return to the contract hire company at the end of the term.

A key benefit of car leasing is the absence of rigid mileage restrictions; guidelines are used to calculate the final payment or balloon rental, which is backed by the sales proceeds, as explained in the video above. It’s important to note that the lessor bears responsibility for the final rental amount and any losses incurred from the sales proceeds while also enjoying potential profits.

At the end of the lease, the lessee can either arrange for the vehicle's sale and receive any profit as a refund of rentals or choose a peppercorn rental to retain the car for a nominal annual fee. Choosing between contract hire and leasing ultimately depends on the specific needs and circumstances of the business, as each option provides unique advantages and considerations.