Frequently Asked Questions
What are the pros and cons of Business Car Leasing and Personal Contract Hire?
There are lots of reasons why leasing or hiring a car through Dick Lovett is a great idea but, of course, you still have responsibilities and you won’t own the vehicle at the end of the contract hire period. Here we’ve set out the key points of the leasing deals:
Drive a brand new car every few years
Low initial outlay - typically equivalent to 3 months rental payment
Fixed, manageable monthly payments – helps with manage cash flow and enables you to drive a better car for your budget
Choice of contract term - from 24 to 48 months
Option to include servicing and maintenance
If you run a business, there are tax benefits – car lease costs can be up to 100% allowable against corporation tax depending on its Co2 emissions, and you can reclaim 50% of the VAT on the monthly rental cost
No depreciation to worry about - at the end of the contract, the vehicle is simply handed back so no worries about resale value or having to dispose of it
Hassle free – everything is taken care of by the dealer and finance company
Road tax, manufacturer’s warranty and breakdown cover is included
Only have to pay for fuel and insurance
You don’t own the car and there is no option to buy it at the end of the contract
You will need the amount of mileage you need and if you go over this, you will have to pay an excess mileage charge
If you decide to end the contract early, you may incur charges
You must return in a well-maintained condition. If not, there will be extra charges to pay
You must pay for fully comprehensive insurance cover
Was this answer helpful?
2 people found this helpful
Ask us a question
Still can't find the answers you are looking for? Fill in the form below and we'll get back to you as soon as possible.