Individuals often complain that buying a vehicle is a huge drain on their finances. A smart alternative to buying is to lease a vehicle via a contract hire agreement. When buying a vehicle, there are all sorts of hidden costs that the consumer must contend with, from tax to insurance. Maintenance is also a key issue when owning a car, one of the biggest disadvantages car owners face is the depreciation of the vehicle over time.

Under a contract hire arrangement, a customer chooses a brand new make and model of a particular vehicle. However, rather than the customer purchasing this vehicle, it is instead bought by a vehicle leasing company, which in turn leases the vehicle back to the customer.

What makes contract hire so attractive to the customer is that, firstly, unlike the terms of a finance purchase scheme, there is no large deposit or final payment required. A relatively modest two or three months worth of payments is all that is usually needed to secure the contract.

Secondly, the monthly lease payment itself is also likely to be cheaper than a finance purchase repayment. This is because, unlike finance purchase repayments, lease payments are not designed to repay the entire outset value of the vehicle, but merely the amount it is likely to lose in depreciation over the two or three year contract hire agreement period.

When the two or three year contract hire period is over the vehicle is returned to the leasing company and the customer starts a new contract hire agreement with a brand new vehicle.

At Lease4Less we can offer some the best deals on contract hire, with both car leasing and van leasing options suitable for private and business customers. If you are like to see the range of vehicles we have on offer to lease, visit our website.