Lease purchase is a form of long term rental which is perfect for those who know they will be looking to move on to another car once the agreement period is over. This option could be right for you if you’re looking for all the exhilaration of driving a Kia, with none of the hassle of ownership, depreciation and selling your car after your contract has ended.
The two leasing options available are Personal Car leasing and Business Car Leasing, we will explain a little about the two:
Personal Car Leasing is also known as PCH or personal Contract Hire, this is a long-term rental of a vehicle of your choice. You will pay an initial payment of 3, 6 or 9 months payments, followed by either 24, 36 or 48 monthly rentals.
Business Car Leasing is also known as Business Contract Hire is the way businesses can rent a car or a fleet of cars for a fixed period of time. Payment terms for Business Contract Hire are usually similar to those of Personal Contract hire, the difference is that VAT registered businesses can claim back 50% of the VAT on the monthly rentals and 100% of the VAT on maintenance packages.