What is vehicle leasing?
Vehicle leasing, otherwise known as contract hire, is the vehicle financing option that is most similar to renting. This is because you have the use of a vehicle of your choice for an agreed length of time, before returning it at the end of this period, with no option to purchase the car at the end of the contract.
The definition of a vehicle lease is a contract whereby one party, the funder or funding house, purchases a vehicle but grants usage rights to another party, the lease holder, for a period of time and under set terms.
A lease allows you to drive a new car for a set term and under an agreed annual mileage. You’ll pay an initial payment followed by a set monthly fee. And at the end of your term you simply hand the car back. Additional charges are then applicable if the terms of the agreement, such as mileage or condition, are breached.
As a vehicle leasing broker, Carparison negotiate lease deals with funders and facilitate the link between them and the dealership or manufacturer supplying the lease vehicles.
Leasing is a completely personalised financing method. You are able to lease any make and model of vehicle on either a business or personal agreement, specify the trim and colour preference and can choose from a range of contract terms that best suit you.
The vehicle will be delivered and collected from either a home or work address at a time convenient to you. Your set monthly payment will include standard manufacturer warranty, breakdown cover and the prevailing rate of road tax for the entire term. You can also choose to add maintenance or complete care packages that will cover servicing, replacement tyres and insurance. Otherwise, you will be responsible for these elements separately.
Please note: there are different vehicle financing products available and you are encouraged to consider all of your options in order to find the most suitable solution for you and your circumstances.
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