Contract hire (or leasing) has become one of the best and most affordable ways to own a vehicle. Giving people a fair chance of owning their dream car variant for a low price, contract hire has given people the room to break away from large payments and additional charges they usually need to dish out for their cars.
Explained in simple terms, taking a car on contract hire means that the car has been leased for a specified duration. And what makes it so popular with the masses is the sheer list of benefits it has to offer, which is almost always missing with outright purchases.
What has helped contract hire evolve into one of the most popular businesses in the country – with hundreds of thousands of vehicles under its belt – is the long list of benefits it has to offer to the client, which is often missing from outright buys.
The popularity of contract hire is so great that almost every one out of three cars in the United States is on a lease!
Here are the main reasons why most buyers today seem to prefer taking a car on contract hire rather than buying:
- One is due to discounts on expenses like heavy down payment, high-interest rates, and monthly payments.
- Customers can own the car paying only a minimal down payment and monthly fee, which is often up to 60% cheaper.
In some cases, you can even get rebates on taxes, as the car is counted as a liability for which the customer needs to pay a specified amount every month rather than an asset. However, these are not the only reasons why most customers have turned to lease a vehicle.
Some of the most useful benefits of choosing contract hire are lower payments than you would have when buying a car. Whether you’re thinking about the down payment or monthly payments, they will be far cheaper when you are looking at leasing a car. You can also avoid the added stress of paying high-interest rates on bank loans or draining your savings in order to make the down payment. You could also consider contacting Empower Federal Credit Union.
There is also no depreciation risk with a contract hire
This is one of the major problems with buying a new car, as you know from the moment you drive it away from the showroom that it is worth less than you just paid for it. What’s more, you don’t need to worry about high maintenance costs. The vehicle is likely to remain within the manufacturer’s warranty period throughout your period of possession. You can see here some of the best new cars available.
What is best though is the fact that this could be a new way of life for you. Once your lease expires, you can simply choose a new car. With the lease period varying generally between 24 – 48 months, customers only need to pay a minimal fee for their vehicle every month to the company, which is generally under a few hundred dollars.
Opting for contract hire does not only remove the added stress of paying large finance charges to the bank, but it also gives customers the freedom to change their vehicle as per their requirements without having to dish out a small fortune.