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Car Leasing

Car leasing in Britain has become much more popular over the past few years and has retained popularity all over the world, particularly in the USA. There are many benefits in leasing over an outright purchase. There are many kinds of finance available for funding vehicles, including Personal Contract Purchase, which many young people are using to finance their vehicles because it is a much cheaper alternative to purchasing a vehicle.

Why buy a vehicle which depreciates when you can lease a brand new vehicle and have no worry of depreciation - it just makes sense!

Even though leasing a vehicle is becoming more popular, there are still people could reap the rewards if they were more familiar with how it works. The challenge with car leasing is that not many people understand the benefits or how cost effective it really is. Before signing up to any finance agreement it would be in a customer’s best interest to find out about all the possible options

Why lease?

  • Fixed affordable monthly payments
  • Maintenance available
  • Fixed mileage contract
  • Predictable motoring costs
  • No worry of depreciation
  • Simply return the car at the end of the contract
  • No large upfront costs

One of the many plus points to car finance and car leasing is that you will know exactly what you will be paying each month. Fixed motoring costs mean that you no longer have the worry of car tax, and, if you decide to include a maintenance package, the MOT, servicing and maintenance is also included.

Leasing eliminates a number of challenges which all motorists face, most particularly the cost of depreciation on a new vehicle and also the cost of purchasing a vehicle upfront. Leasing a brand new car is a great way for someone to have the car they have always wanted at a fixed price. It also makes luxury vehicles more accessible when previously they may have been out of a customer’s price range.

A car leasing price is made up of various elements which you may not be aware of. The lease price is made up of the difference between the initial purchase price and the residual value. This is the value of the vehicle once your contract has come to an end. Finance companies can calculate this because the mileage is fixed and the car has to be returned in a condition in accordance with a published wear and tear guide for a vehicle of a certain age. Some vehicles hold their value much better than others so it is worth shopping around for the right vehicle.

What vehicle should I lease?

Finding the right vehicle is important and if you haven’t a clue it may be best to ask for some advice. We don’t just lease cars we also lease 4x4s and vans! Each vehicle leasing deal will be priced according to the residual value. It is correct that certain models hold their residual value much better than other models. At Central Contracts we have many special offers available, so that you can get your ideal car at the best possible price.

You can also generate a quote on our website for free if you would like to compare multiple models.

Company car finance options

Company cars for your business have many advantages not only for the company as a whole but also for your employees. Not only does it give your company an image boost but it is also cost effective compared to purchasing vehicles.

Although financing a vehicle is the most cost effective way of obtaining a fleet of vehicles in order to make it work for your business you must find the best finance method for your company in order for it to be beneficial.

There are a number of different company car options for you to choose from. Many businesses and also personal customers think about purchasing a vehicle out right. This however isn’t the most cost effective method, when taking into consideration the depreciation, running costs, servicing costs and road fund licence charges. No matter what size the fleet is it will still cost more money to purchase vehicles out right than to use a finance method. Purchasing will require a large payment upfront and if an employee decides to leave you are stuck with the vehicle.

On the plus side the vehicle will be treated as a company asset. This means that if you wish to at any time you can sell the vehicle and keep the profit. This also means that you are responsible for the vehicle repairs, tax, MOT and servicing.

Business Contract Hire

Business contract hire is the first finance option which you should be aware of when looking to build a fleet of vehicles. Leasing a fleet of vehicles usually means that you will gain a discount if you lease from the same company. There are several advantages to leasing a fleet from us which you may not be aware of, such as low initial payments, fixed monthly payments, business VAT advantages, luxury vehicles become now more accessible, maintenance can be included, you decide your annual mileage level and fixed price motoring. With this in mind it is the perfect solution for your company car needs. Although contracts hire works for many businesses there may be alternative finance options which will better match your particular circumstances.

Daily Rental

Daily Rental is a great short time fix for many companies who need temporary vehicles at short notice. They can be used for employees who are visiting from overseas or for staff who need a vehicle whilst they are waiting on their new one. Daily rental is also useful for people who need transfers to and from a destination and do not want to drive their own vehicle. One thing to remember before using daily rental is to think about the length of time you would like to rent for as if you use daily rental for long periods of time it may not be the most cost effective option.

Short Term Contract

Short Term Contract hire may be more cost effective if you wish to lease a vehicle for between 1-12 months. This is the perfect solution for companies who have new employees who are on their probationary period but still require transport. Not all car leasing companies offer leasing contracts which are this short so you will need to do your homework in order to get the best possible price.

Finance Lease

Finance Lease is an alternative way of having the fleet of your business dreams. Finance lease is mainly for businesses conscious of their cash flow position, and those needing to inject this cash into the business rather than into a vehicle fleet. There is normally a fixed balloon payment at the end of the contract. You can pay the balloon payment by cash, by selling the vehicle or by refinancing the balloon payment. Before taking this type of finance out make sure that you understand that you will have to pay the balloon payment at the end of the contract.

Sale and Lease Back

Sale and Lease Back is the final finance option which you may want to consider. This is not like other types of finance where you lease a new car or multiple cars this is where you sell your current fleet to a leasing company who then take over ownership of the vehicle. Once the leasing company has taken ownership of the vehicle you will then lease the vehicles back from the leasing company which allows your company to improve cash flow. Not only will this help your business out in the short term it will also relieve you of car depreciation concerns.

So what finance option is right for my business?

Before signing up to any type of finance for your business, think about the needs of your company. Deciding what’s best for your company financially will help you to narrow down which finance option is right for you. For example if you do not have any vehicles you will not be able to use sale and leaseback and contract hire may be more suited to your needs. If you would like any more information on the best company car finance options, give us a call on 03447451717 so we can try and help.


For disabled people, getting around can be challenging which is why the Motability scheme was established. It provides disabled people with the option of having a brand new car instead of disability allowance. This is something which many people appreciate particularly if they struggle to do get out to the shops or have full time jobs, since travelling then becomes much easier.

Motability allows disabled people to lease a vehicle, a powered wheelchair or a mobility scooter depending on their preference and needs and this is paid for by Motability.

Many people leasing a vehicle through Motability do so because of the fixed motoring costs, since they can include servicing, maintenance and breakdown cover which is a weight off every driver’s shoulders. If you are a non driver but would still like a vehicle you can do so by having two named drivers on the vehicle. Insurance is the only cost not included in the Motability charge.

If you think that this is something which you are considering for you or on behalf of a minor aged 3 years and over who is entitled to Motability you should visit http://www.motability.co.uk/?gclid=CKzv6u_ijbUCFU3HtAodXhUAgQ for more information on how the scheme could change your life and enable your family to get around.

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