Car leasing is very big in America, you basically rent the car/van for a period of time, usually 24, 36 and 48 months. In the UK this is known as a lease, contract hire or operating lease.
The monthly price of the lease depends on a number of factors:
- Purchase Price
- The Make/Model of the Vehicle
- The Amount of Miles you will be doing
- How long you need the vehicle for
- The cars value at the end of the contract
In a quick instance, the lease is worked out by what the funder/supplier pays for the vehicle and what the car will be worth when they sell it at the end. You will generally pay the difference between the two.
Short-Term Vehicles
Similar to long-term leases, a short-term contract works the same way but the lengths are much shorter. Usually the car loses the most amount of money within the first 12-months, this is why the costs of these briefer contracts are higher than traditional car leases.
Short-term flexible or fixed contracts can be a great way of running a car with flexibility or no long-term commitment and many of our clients love them for many reasons including swapping your car more often, fitting in with seasonal trends or probation period staff.