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Opting for the services of the vehicle leasing companies
Posted On : Jan-18-2012 | seen (408) times | Article Word Count : 505 |

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A car leasing option can be called by many different names; it can be known as a contract hire or a finance lease. It is sometimes known as a car leasing scheme or hire purchase option. This refers to the one and same leasing facility where the approved finance company offers a leasing scheme to the consumer in procuring a car which can be used for a few years.


How a finance lease works


This is a VAT-free financing option that is employed by VAT-registered companies which allows businesses to enjoy procuring a vehicle to facilitate their business operations by paying a plausible sum which is construed as rental rather as loan or repayment.


Different businesses will procure different types of vehicles to facilitate their business operations; hence, there would be different monthly rental incurred which is usually determined by several factors such as the vehicle鈥檚 initial cost, period of lease and residual value of the vehicle. The residual value refers to the vehicle鈥檚 estimate value at the end of the lease minus the vehicle depreciation. That would compute the monthly vehicle rental with an imposed mileage limit to secure the vehicle鈥檚 future value.


The consumer is allowed to use the vehicle in every way; even keeping it at home or traveling across the nation with it while under the car leasing scheme. But at the end of the car lease, the consumer can opt for a pay off contract equal to the vehicle鈥檚 residual value. Once that amount is settled by the consumer or business, the vehicle is released totally to t. Wholesale Authentic Nike Shoes Wholesale Kids Air Jordan [url=http://www