To all those who rent or lease a car, whether for a single trip or daily life, there's the additional problem of how to finance his regime. A variety of methods you can use to fund its rent, if you are a tourist or are looking for their car at the end of his contract.
What follows is a guide to help you decide which form of financing is likely to be best for your situation. Isaims to provide a brief summary to follow their understanding of the major types of finance, with particular reference to some of the advantages and disadvantages of each.
Installments
The traditional way to buy a vehicle known as a purchase in installments. Payment for the vehicle is made in a given period and once all payments have been made, the vehicle becomes your property. It is customary to pay a deposit and the balance ofvehicle to be paid in monthly installments, as determined by the amount of deposit paid, the duration of the contract and the selling price of the vehicle.
What makes this an easy method of financing is that the loan is secured against the vehicle the vehicle. Since you do not own the vehicle until final payment is made, this means that the creditor can repossess the vehicle at any time if you can not make the payments.
It 'important to remember that only the vehicleruns the risk of not recovering, your home or other personal effects. However, if you sell the vehicle before the expiry of the contract, which still would be required to repay the loan in full.
A 0% fund regulation is considered the best option, but requires a big deposit. It 'also important to note that the monthly payments may be higher than what would be other methods of financing, but the lump sum is likely to be minor.
It should also be aware ofAnnual rate of a hire purchase agreement prior to any sign, as interest rates vary from retailer to retailer.
Staff leasing
Staff leasing is the lease of a vehicle during a certain period of time and mileage at a fixed monthly income. The monthly rent is determined by the cost of the vehicle, the lease term, mileage and the depreciation of the value of the vehicle at the end of the contract.
Sometimesagreement also includes optional accessories, such as maintenance packages. Although not required, these may be appropriate depending on the mileage and general usage of the vehicle.
Lease Benefits include being a method of engine fixed costs and the possibility to exchange the vehicle on a regular basis. Therefore, knowing from the outset exactly how much monthly income will pay, without anyone outside of large payments.
Lease of the staff able to provide a method ofthe recruitment of two new vehicles and used for a certain period of time without liability for maintenance and worry about the depreciation of the value that is associated with traditional ownership.
Personal contract purchase
Personal contract purchase allows an individual to rent a car with a fixed amount of time for an agreed monthly payment. It differs from hire purchase and lease agreements of staff, because at the end of the contract have the option to buythe vehicle for an additional charge or return the car with nothing else to pay. The monthly payment is calculated by the initial cost of the vehicle, the mileage covered, the period of the lease and the estimated value of the vehicle at the end of the contract. It is possible that the lease to include features such as the package of basic services or the complete management of the vehicle, if necessary.
While personal purchases, the cost of the contract usually more buying to rent, a greatadvantages is the lowest monthly cost. Additional benefits include the protection of the Consumer Credit Act, smaller tanks and the ability to spread payments for their inclusion in the final payment if the purchase of the vehicle at the end of the lease.
Daily Rental
Daily rental is right for short rental periods typically ranging from 1 day to 12 months, although it is customary for the duration of the contract must be less than 12 months. This is a particularly usefulFinancing rented for short, as for a holiday, if your car is being serviced or if generally rely on alternative forms of transport. It is common to find provisions, such as the minimum age for the driver (up to 25), a mileage allowance or a maximum fuel return policies. It should also be aware of optional accessories, including glass or insurance of the tire. It 'also important to note that most rental agencies require the use of a credit card.
HopefullyThis brief guide has provided an introduction to the financing or leasing your car and can arrange for further investigation of every opportunity to maximize investment and minimize cost.
A common starting point is to consider how long you want to rent or lease the vehicle because, as the different options apply to different time scales. You also need to consider if you want to own the vehicle at the end of his contract or to returnit.
Finally, it is important to consider the additional benefits or drawbacks, such as the ability to trade your vehicle.