A Guide To The Different Types Of Car Lease Deals
There are many benefits of car leasing, but there are also many different types of car leasing. Whatever your needs and circumstances, you will be able to find the best possible vehicle leasing deal for you, because there are various types of deal which take into account, the type of vehicle you want to drive, whether the vehicle is being leased through a business or as a private individual, how you want to structure the deal financially, whether you want to make consistent cash savings while driving the vehicle, whether you want to renew the vehicle frequently or what initial payment you want to make.
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Different Types Of Car Lease Deals
Within this myriad of options you should be able to find the type of lease deal that suits you, and certainly at Pink Car Leasing we can talk to you, understand your situation and tailor a package that suits you best. In general, however, the following are the different types of lease deal that are most common:
Personal Contract Hire (PCH) – the most popular lease deal where you pay a deposit, fixed monthly payments for the duration of the lease, and then you return the vehicle at the end of the lease.
Personal Contract Purchase (PCP) – this is similar to PCH except that you reach a point at the end of the lease where you can pay a bulk price to own the vehicle outright or return it to the leasing company. When assessing lease or PCP, the ‘balloon payment’ to secure the vehicle means the fixed monthly payments are usually a little cheaper than with a PCH deal.
Business leasing – when a vehicle is leased through a business. This is usually managed by a fleet manager and consequently the vehicle is driven and paid for as a company car or van. Businesses can get discounts on bulk lease deals but there are specific tax rules for driving company cars.
Personal leasing – a straightforward PCH lease deal taken out privately by an individual. This will likely be slightly more expensive than a business lease deal because of the difference in tax.
Electric Vehicle (EV) leasing – the leasing of a zero-emission EV, this is sometimes cheaper than leasing a petrol or diesel vehicle because EVs are exempt from paying road tax.
Van leasing – leasing a van is usually done as a business lease, because it is for work purposes. Vans can be leased in various different sizes and types, and can be chosen as appropriate for your business, ie. with storage space or people space and with different ease of unloading etc.
Pre-owned leasing – otherwise known as used car leasing. New or used car leasing only differs in that pre-owned cars have been leased once before and so are either one, two or three years old depending on the previous lease period. Used car leasing is usually cheaper than new car leasing, because a large part of the vehicle’s depreciation has already occurred.
Short-term leasing – this is geared towards motorists who like to change their vehicle frequently, and hence deals are usually between three to 18 months long. The advantage of short-term leasing is that you can benefit from the best deals around because you are always in the market looking at new vehicles.
No deposit leasing – no deposit leasing is exactly what it says on the tin and suits people who may not be able to afford a large initial payment to secure a vehicle. However, because of this, the fixed monthly cost may be a little higher than a regular PCH deal, but there could be nothing to pay until your first monthly payment after 30 days of driving.
Talk to our sales team at Pink Car Leasing and we will be able to find the right vehicle leasing deal to suit you, your lifestyle and your budget, while still ensuring you can choose from the most competitive leasing deals around.