A Contract Lease is an agreement whereby the lessor (company leasing the vehicle) grants use of a vehicle to the lessee (party using the vehicle) for a defined period and enters a contract to 'buy back' the vehicle - for an agreed sum - at the end of the lease period. The contract involves a series of agreed fixed rentals and may or may not include an initial or final payment (depending on the requirements of the lessee).
Leasing has many advantages for business owners:
Sample Lease Prices over a 3 year Term:
- fixed monthly repayments which allows for greater certainty of cashflow and budgeting
- maintenance and upkeep can be included so you don't have to worry about the variable costs associated with running the vehicle
- the buy back clause ensures you don't have to worry about the disposal of the asset
- you don't have to factor in the depreciation of the vehicle into your business though a proportion of the car's value can be written down against your company profits
- if for some mechanical reason, your car becomes un-roadworthy, we will supply you with a replacement vehicle whilst your car is off the road