Tuesday, November 23, 2010

Contract Hire Lease - Your Key To Low Cost Fleet Vehicles

By Shaun Phillips


Business owners and high end executives always seem to drive really nice luxury cars, we all know this but have you ever stopped to think why? Is it simply an extravagant display of wealth? Or is there actually more to it? The truth of the matter is that to business owners and executives, image is very important. This is not a case of widespread vanity, its just that the people with these positions in a business tend to interact on a face to face level with new prospective clients. They understand the need to convey an image of dependability and trustworthiness, and the car they drive is actually therefore a very important factor.

Image isn't everything when you are ordering a new car though, there are additional factors to consider. The size of your family could be important if you will be using the vehicle outside work for example, also if you have to pay for the fuel you use during the times you use your company car for personal use, then you may want to think about economy and perhaps even go for a diesel car. Some companies choose to drive estate cars as they have a lot of equipment that they need to transport either to jobs or trade shows.

Leasing vehicles by way of contract hire is an increasingly popular method of sourcing fleet vehicles, this is probably due to the fact that most businesses prefer the certainty that a fixed monthly bill per car brings, because the leased cars are always brand new, and are changed every few years, they are constantly covered by a manufacturers warranty, meaning the company is not exposed to any additional motoring costs like expensive garage repair bills.

Most people are under the false impression that when they lease a car they will not be given any say regarding the cars colour or specifications, this is untrue and when you lease a car you can expect to have the same sort of options available to you as you would if you were purchasing the vehicle outright. Leasing companies know that you are the one who will be using the car, and therefore they are happy to make sure that any optional extras you like the sound of are present in your new vehicle.

Whilst it is true that the majority of car leasing customers are businesses, there are a growing number of private individuals who now choose to lease their personal vehicle instead of buying. There are a number of reasons for this, firstly people are becoming more financially aware about car ownership and are reluctant to purchase what is in effect a rapidly depreciating asset. Another reason for the increase in private leases is perhaps the fact that leasing is a low cost way to drive the more luxurious and sporty cars that would otherwise be out of the price range of the majority of people.




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