It is likely that you have never thought of getting a car on a contract hire before, most people havent but there are certain advantages of doing so. An investor, car company, or financial institution will purchase a car on behalf of the customer and then give it to them in the form of a lease. There are short-term and long-term leases depending on your situation.
This means that if you where to go for a
Peugeot contract hire you would put a deposit down on the car and then lease it over a period of two to five years. At the end of the lease you can either choose to purchase the car by paying what is left or by selling the car back to the company and getting a new one.
There are a number of reasons that make contract hire a serious thing to consider. It is very beneficial to business as the payments can be claimed as a business expense to the company, which makes it tax deductible. This can save you a considerable amount of money during the course of your car ownership.
You will also always have car that is two to five years old. Usually you would sell the car back to the company that has leased it to you and get a new one. This means that you are unlikely to ever have any serious issues with repairs.
To help you get the best deal when you take on a contract hire such as a
Peugeot contract hire we have put together some pointers.
Check for any early termination penalty. Once you have decided on the length of the lease you want then make sure you stick with it, if you think you may want to cancel it then make sure you know the cost of this because termination penalties can be as high as 70% of the remaining rental value.
Do you want to maintain the vehicle or not? Often you will be offered a maintenance package as an optional extra. These also can come with excess mileage charges so if you opt for it make sure you know exactly what the conditions are.
Look out for hidden fees. A lot of the less scrupulous companies will have hidden fees that are only written in the small print. These often come in the form of delivery or administration fees, while this can be reasonable you should be made aware of them upfront.
