1dart
Well-Known Member
Im thinking of leasing a new car through my business and wondered if any one has any advice? Whats the difference between lease and contract hire? Could do with a list of pro's and con's. Cheers.
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Lease/contract hire
- Thread starter 1dart
- Start date
blue fingers
Well-Known Member
- Joined
- 6 Jan 2009
- Messages
- 136
If you're doing high mileage it's often not worth it and cheaper to just buy. When leasing you're effectively paying for the depreciation in the value of the car, plus the profits of the company leasing it to you- high mileage causes significant depreciation.
1dart
Well-Known Member
blue fingers said:If you're doing high mileage it's often not worth it and cheaper to just buy. When leasing you're effectively paying for the depreciation in the value of the car, plus the profits of the company leasing it to you- high mileage causes significant depreciation.
Around 10k miles il be doing. Just don't want to jump straight in like i normally do.
yeseye
Well-Known Member
So you're getting a convertible.1dart said:blue fingers said:If you're doing high mileage it's often not worth it and cheaper to just buy. When leasing you're effectively paying for the depreciation in the value of the car, plus the profits of the company leasing it to you- high mileage causes significant depreciation.
Around 10k miles il be doing. Just don't want to jump straight in like i normally do.
kinkysleftfoot
Well-Known Member
I lease all the time, I only do 10k a year so well worth it for me, go for full maintenance as well. Nice new car every 3 years
I'm no expert but as I understand it, Leasing a vehicle is exactly that, whereas contract hire is more of a product that includes vehicle rental but can also have service, maintenance and repair plus glass, tyres etc included. From a business perspective it comes down to convenience and risk. Both pure leasing and CH enables you to reduce your exposure to residual values and asset depreciation (whilst paying another company to carry that risk of course), and CH bundled with service and maintenance gives you overall predictability on cost as well as convenience.
May be worth giving your accountant a shout to see if it's right for you?
May be worth giving your accountant a shout to see if it's right for you?