An Introduction
to Car Leasing

What is car leasing?

To put it simply, car leasing involves using a vehicle over a fixed period of time for an agreed cost.

This is an effective form of long-term rental, giving you the chance to experience a new car for a lot less, whilst also eliminating many of the issues that come with car ownership.

There are two main forms of car leasing – Personal Contract Hire and Business Contract Hire.

You can lease a car for anywhere between 2 and 4 years, and you then hand the car back without having to worry about selling it on and getting a good price.

Business car leasing and personal car leasing – What’s the difference?

These terms actually aren’t that different.

Business Contract Hire: Designed for the contract to be in the name of a business (limited company, LLP, partnership, sole trader or charity) for the use of either a single employee or a pool car.

Personal Contract Hire: Designed specifically for individuals who wish to lease a car

Individuals could save money with car leasing, because they eliminate the need for loans that come from buying and running a vehicle for its full lifespan. Businesses could receive tax benefits and avoid negative equity situations with car leasing.

Ok, but what are the costs with car leasing?

Car leasing is one of the most cost-effective ways to drive a vehicle, meaning it won’t cost you the earth to get behind the wheel.

You can lease a car with First Vehicle Leasing for less than you’d think!

Vehicle cost depreciation is also covered in your monthly lease payments, and initial rentals are flexible to almost any budget.

In addition to all this, taking advantage of our maintenance and servicing package means that you avoid facing servicing bills – something that can be very expensive if you own the vehicle outright.

What car leasing means to individuals

• A fixed cost for a fixed period, meaning easy budgeting
• Get a brand new car regularly
• Better value than buying a car outright
• Maintenance and servicing packages available for increased peace of mind
• No negative equity or haggling over trade-in

What car leasing means to businesses

• Fixed cost for a fixed period for cash flow management
• Employees will always be driving new cars
• Maintenance and servicing packages available to make sure that cars comply with current Road Risk Legislation
• More tax efficient that purchasing cars in most instances
• Full choice of makes and models to make sure employees are driving the right sort of car for your business

Car leasing vs Ownership: Pros & Cons