Should I lease or Contract Hire my new car?
Many people ask this question because they are unsure of the difference between car leasing and Contract Hire.
On the face of it, it can be confusing. However, this question all comes down to terminology. Contract Hire is actually just a type of car leasing. So maybe a better question to ask would be ‘Which car leasing option is right for me?’
In this article, we’ll outline the main leasing options and discuss Contract Hire in more detail.
There are six main car leasing options; four available to businesses and two available to private individuals.
Car leasing options available to businesses:
- Contract Hire
- Finance Lease
- Lease Purchase
-
Contract Purchase
Car leasing options available to private individuals:
- Personal Contract Purchase (PCP)
- Personal Contract Hire (PCH)
As you can see, Contract Hire is simply one of the six options available to someone who wants to lease a car.
Contract Hire is however the most popular method of financing a car lease. People like it because it offers a hassle free approach to running a vehicle.
The main benefit of Contract Hire is that you pay a fixed monthly cost. This enables you budget and forecast accurately.
It also eliminates the financial risk associated with the disposal of your vehicle. This is because you simply hand the vehicle back to the leasing company at the end of the contract.
Throughout the duration of your contract, you will receive road tax each year – meaning you won’t have to remember to renew your road tax and won’t have any more trips to the post office!
Contract Hire is only available to businesses. PCH is the equivalent option available to private individuals. They both offer exactly the same benefits.
Need more help?
We're a friendly and helpful leasing company - We take the time to find you the best leasing deals that are right for you. Why not contact us for advice on 0845 052 5268 or ask for a leasing quote?
