Saturday, February 25, 2012

Different Kinds Of Car And Van Leasing Contracts And Monetary Options

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By Briana Jake Woodward

Sometimes it is more convenient and prudent for persons to enter into car leasing contracts instead of owning a vehicle. This is made possible through Car and van leasing contracts which allow the use of the vehicle(s) for a fixed period of time for an agreed amount. The agreement will evidently be governed by a number of conditions.

The vehicle leasing may be used for commercial or private use and accommodate the lessee in a variety of ways. The leaser will benefit from the arrangement as well. A variety of leasing plans are available and this is what we shall be considering hereafter.

The use of a vehicle for private use, either with or without maintenance, is known as a Personal Lease. Whether the vehicle is maintained by the leaser or not is an addition which may include the replacement of tyres, or access to roadside assistance in the event of breakdowns or accidents. If the option is not chosen to be included then the person leasing the vehicle will usually be held to more stringent conditions which would attract additional levies to be imposed for excessive wear or for any maintenance required.

The lessee has the opportunity to contract specific terms for the lease. A typical lease normally sets guidelines and limits for the vehicle's mileage. Limits usually include the number of miles the vehicle may be driven. Typically ten thousand miles per year for passenger vehicles, with fees for anything over the agreed upon amount, is the norm. However, some leases will permit, for an additional fee, this amount to be increased if necessary. A lease may specify that any added cost will be transferred to the lessee.

Finance Companies often form coalitions with Leasers and offer attractive benefits for potential lessees referred to them. These offers often includes the waiving of signing fees of a favourable offer to purchase the vehicle at the end of the contract.

Leasing companies also offer commercial/business contracts. These types of contracts are beneficial for companies who only need a vehicle for certain business operations and for a specified time frame (between twelve to sixty months).

The choice to maintain the vehicle's tires, or acquire a substitute vehicle if needed, are important guarantees for any business. For this type of arrangement the vehicle is retained by the leaser. Some companies are willing to work with the lessees so they can determine, each month, how the payments are to be calculated.

Many large companies offer Cross border leasing agreements too. This option is for the vehicle to be used even in another country. Cross border leases are common occurrences in European countries. These types of leases serve as a benefit to the lessee because of differential taxation of assets across various countries.

Loan payments are normally considerably higher than Leasing Fees for vehicles of identical make and plate. This alone makes leasing appealing for many people. Couple this with less strict qualifying procedures and optional advantages, and the result is a fast growing sector in many countries, where leasing is becoming more popular and in demand.

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