Why Companies Prefer Car And Van Lease

Dirik Hameed
SubmitYOURArticle.com
September 25, 2011

Van and car leasing are one of the most popular options for businesses today. This choice is one of the most cost effective ways for companies to handle transportation issues. The business keeps the vehicle for the time of the contract, then returns it. A newer model and a new contract then replace the car. This has great benefits. Without the burdens of car ownership, the business always has the latest model.

Businesses that offer services like catering, carpeting, or carpentry might choose van leasing. The tools of the trade are then easily transported. In addition, this is a great option for businesses with delivery service. A service business, or one with delivery service, can get into trouble if the vehicle breaks down. The cost of repairs is incurred. The additional cost of business lost is also incurred. Those who have a vehicle lease need only contact the leasing company. The vehicle's replacement and/or repair are the responsibility of that company. Today, vehicle repairs are very expensive. Two things to consider are parts and labor. That is not the end. A leased vehicle is traded in every two or three years. Car technology is advancing and the newer models break down less frequently than the older ones.

Car leasing is another choice. A business that employs a large staff may consider this. Corporations offer personnel this perk. Cities that have airports use transportation services. Car rental is not something people who have just landed want to deal with. This type of service is more convenient for them. It is much more expensive to purchase these cars than leasing them is. The biggest reason is the leasing company must take care of repairs.

Knowing the process is one of the most important aspects of leasing a car. Many people do not understand this process. It is not really difficult. One thing to remember is it is not the same as renting a car. People should understand before considering a car lease. The first step is to research the process. The second step is to thoroughly research the car for lease companies. The conditions of the company's car and leasing agreement should be understood. This ensures it is the best deal possible.

The first thing to consider is how leasing works. The amount paid for leasing is based on how much the vehicle depreciates during the contract. The value of the car at the beginning of the lease minus the lease end value is the depreciation. This is called residual value. This means the business leasing the vehicle does not have to pay out money to own an item decreasing in value.

Additionally, businesses opt to lease because of the lease end options. There is a choice of trading the car for a newer model. Sometimes the lessee can purchase the vehicle or walk away. These options are not available when purchasing a vehicle out right. This is in the case of a closed-end lease. Generally, open-end leases are offered to business. The business will incur an additional charge in an open-end lease if the vehicle depreciated more than anticipated. The amount of a monthly payment for leasing is generally about 2/3 that of a loan payment for purchasing. It is usually much easier to get approval for a lease than it is for a loan.

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If you are pondering whether to lease a car, check out Leasing Options at http://www.leasingoptions.co.uk . Leasing Options is a great website to lease a van - http://www.leasingoptions.co.uk/van-leasing