Car Leasing in the UK and how it works

Car Leasing in the UK and how it works

Its almost an obsession in the UK in recent times and with 31 million vehicles on the road at the last count in 2010 you can begin to understand what we are talking about is motoring or the use of a car or van to drive to and from places in. Maybe it’s the result of the suburban spread and employees more likely to have to commute to work or perhaps its just the face of the modern age and technological advances but either way we are certainly a nation with a passion for driving.

With the thirst for Cars we have also seen a near constant evolution of new and improved models, ever changing innovations and technology and a shift ever towards a materialistic culture itself but car manufacturers know full well that the British public will lap it up. When it comes to paying for these shiny and new vehicles we tend to follow that other popular UK route and that’s where car credit comes in and an alternative to outright finance is car leasing and contract hire.

Car leasing is the lease and the use of a car for any set time period in which a financer essentially purchases a vehicle for the customer after which it leases it back to them using a fixed contract. Vehicle leasing is actually a option that has reached Britain’s shores from the United states cousins over the Atlantic Sea in which its acceptance is very large and until only a short while ago ownership of other big items such as homes and apartments was also rented too. The massive benefits of only retaining a car for a fixed period of time eventually carried over to us here in Great britain so the car leasing and contract hire marketplace was developed. Car leasing is really a solution to owning a brand new car or van for a reduced payment because what you do is agree to a fixed rental period of the motor. Whenever you conclude the time period and give the car keys back again the metal isn’t your issue therefore, if it’s worked out a whole lot worse than predicted with depreciation the funder takes the hit not you as it was their calculations that determined the rental amount.