When choosing a contract hire lease company, there are some specific traps to beware of. Several leasing firms might promise low cost month-to-month funds, just for the customer to find that they’re tied into an excessively lengthy lease period. One good thing about leasing a brand new vehicle is the safety offered by the producer’s warranty. A lease period that extends a good deal beyond the life of the standard warranty period starts to lose its lustre.

Similarly, some offers with low-cost lease payments and the promise of eventual motor vehicle ownership for a business customer, could effectively have a ‘hidden’ large payment at the finish of the lease period built in to the system. The full details of any lease arrangement should be made available well before the client signs the lease agreement. There are some car leasing contracts that are particularly vague relating to the condition in which the motor vehicle ought to be kept, so as to avoid any penalties. In some circumstances the exact nature of these financial penalties will also be unclear. The lease customer ought to always have the small print of any penalty clauses on exceeding mileage and wear and tear made completely transparent.

A car or van leasing company might try to force the customer to decide on a specific vehicle make or model. One of the many key incentives of car leasing, however, should be its potential to allow the customer to decide on the exact make and model of his or her choice. Many companies are finding that pressures on their cash flow could be tremendously eased by ditching van purchasing in favour of van leasing. Van leasing offers a firm the exclusive rights to its choice of brand new vans for a modest month-to-month lease fee. This month-to-month payment is largely based on the vans’ depreciation throughout the two to 4 year lease period. Because the depreciation over that interval is a lot less than the acquisition price, leasing works out far cheaper than purchase finance payments over the same timescale.

Monthly payments could be made even lower by means of a deferred purchase form of van leasing called lease purchase. Under lease purchase, month-to-month funds are kept artificially low in return for the company agreeing to make a closing inflated ‘balloon’ payment at the finish of the lease period. It is worth understanding that because the vans leased are brand new and beneath producers’ warranties, maintenance costs are also lowered with van leasing. To help matters further, with contract hire lease (whereby the van is returned on the end of the lease), the road fund licence is often included.

Some motor vehicle leasing critics dispute that if the vans are bought and kept going for an extended period, then the preliminary high acquisition costs would finally even themselves out over the years. The issue is that nobody can predict how the vans will fare in the long-term. More importantly, a firm with cash flow pressures needs funds now, not in a couple of years.

Vehicle leasing is made quick and easy by the staff at Lease4Less, they provide impartial advise concerning which make and model will best suit your needs, flexible terms concerning maximum mileage limits, and every lease includes breakdown cover as standard.