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People have very different attitudes toward the many different forms of vehicle finance available.

Here are some reasons why you should consider vehicle leasing compared to buying outright or hire purchase for your business or personal needs.

By choosing vehicle leasing compared to buying – You Release Cash-Flow to grow your business, and you will not own a depreciating asset.

You will always have a new vehicle, under warranty subject tou your lease length, projecting your high professional business status with your clients, and with Your green credential in mind You will be kinder to the environment by using new and more ‘eco friendly’ vehicles that have lower CO2 levels, and no MOT worries! This statement applied to vehicles on a maximum term of 3 years.

The rentals can have maintenance included if required, and normally will include the road fund licence for the full term of the agreement, which means that you can run your vehicles on a fixed cost motoring package, only needing to consider fuel and insurance, therefore simplifying your fleet costs considerably. I would strongly suggest that you only consider a fully maintained lease if you do more than 20,000 miles per annum.

Rentals are based on the ex vat price of the vehicle, and up to 50% of the Vat on the rentals is reclaimable on cars and 100% on all van leasing, other tax benefits are also available, speak to your accountant about the tax efficiency of Contract hire for your business.

Speaking to an independent leasing company will give you access to a “one stop shop”, where they will deal with finding you the vehicle you want and also give the most attractive finance rates. Only speak to companies who have advisors specially trained in commercial vehicles.

To help make your decision easier the following is a list of those differences:
- At the end of the car loan term you will own a car if you opted to buy. At the end of the car lease term you return the car to the dealer and are left with nothing.

- A car loan term is usually four to six years. vehicle leasing term is typically two to four years.

- Monthly car loan payments are generally higher than car leasing payments. This is because you are only really only paying for the car’s depreciation during the car lease term plus interest, taxes and service fees.

- Most car leases limit the amount of mileage you can put on the vehicle. If you plan on traveling a great deal you will have to consider negotiating a higher mileage limit. This will mean slightly higher monthly payments. If you exceed the limit you will be required to pay a charge of between 2p to 12p per mile. If you choose to buy the vehicle this is not an issue.

- When leasing a car there are limits to the amount of wear you can cause to the vehicle. Excessive wear will result in extra charges. If you buy you can do what ever you want to your car.

- If you terminate a car lease before the term is over there usually is a charge. In the case of car buying if you buy out the remainder before the car loan term is up you are usually charged a fee as well.

Oddly enough, many car buyers put a lot of stock in the auto black book, but there is more to cars than black book value. I should know. I am a used car salesman, which means that I make my living honestly appraising and selling cars for their value. It is important to know the automotive black book rate, but that isn’t although there is to it.

Depending on how well you care for your car, what repairs and modifications you make, and even what climate you live in, the auto black book value can be way off. The car can be worth half of what it should be, or worth twice the book value. It all depends.Auto black book is a good estimate, but it is only that. People look at the automotive black book like it is the holy Bible. If they can find a car that is 300 dollars under the auto Black book value, they think they have gotten a deal. If they find it car that is just a couple hundred dollars over it, they won’t even consider it.

What they don’t realize is that the more expensive car might be more expensive for a reason. No matter what the auto Black book says, if you change your oil frequently, drive your car carefully and slowly, and live in a climate without harsh winters, it may well be worth more than the listed used car value. Similarly, a fairly new car can be so worn down that the auto Black book value is a joke. It will be worth barely a fraction of what the book says it is worth.

Even if it looks good on the outside, it will be worn out on the inside.Honestly, the auto black book value is a good place to start looking, but it is not the whole story. Only a competent and qualified mechanic can tell you the real facts about the car that you are looking at.  Auto black book, after all, tells you how likely a particular make is to keep it’s value and continue running, but it doesn’t tell you anything about any particular car.

Only a detailed inspection, both inside and out, can determine that. I don’t mean that you should look at it carefully. I mean that you should have a mechanic check out the engine, the wheels, the shocks, the brake pads, and all of the other important parts.