car leasing contract
How long are lease contracts?
It is impossible to say that one car finance option is always better than the other because the correct answer always depends on the circumstances of each case and the type of lease you are choosing to use. However, the monthly cost ofContract Hire leasing for a period of 2 to 3 years is almost always much cheaper than the cost of buying. If you obtain a competitive leasing deal for the same car, same price, same term, and same up front payment, monthly lease payments will be as much as 30% to 60% lower than the monthly payment when buying a car by loan payments. This enables you to get a better car than you could afford if you buy it outright using a loan.
However, please note, that the forms of finance are very different in that one finances the use of a vehicle, the other finances the purchase of a vehicle. Each has its own benefits and drawbacks. To understand these better please refer to our car finance option explanations.