Article  Contract Hire Information Is your vehicle old and squeaky? Is it time to trade it in and look for one which is more reliable to travel from point A to point B in? Well look no further. You may be looking to purchase a vehicle but after this article you may want to look into a contract hire. This is just another word for leasing a vehicle. There are many advantages on a contract hire versus purchasing a vehicle. So lets get started. To start off if you are looking to do a contract hire this means the vehicle at any time will not be owned by you. It is more like the finance company is lending you a car for your to use such as a rent-a-car location would do if your vehicle was in the shop or in an accident. You will not have the title in your name and you cannot do any physical changes to the vehicle since it does not belong to you. Once the contract hire is up you hand in the vehicle and do more paper work for another vehicle if contract hire is what is right for you. Unlike owning a vehicle where you will have all the responsibilities on your such as maintaining the vehicle and other mechanical situations that can occur, the contract hire would be handled by the finance agency. These contract hire offers are usually anywhere from one year to four years depending on what you and your agent work out. The mileage is also accountable so you want to make sure you do not go over the given amount of miles each year or you will be tacked with additional fees when you go to hand in your vehicle. This will get pricey in the long run if you are a traveler. You might want to think again on your choice from purchasing to leasing. As for anything there are always advantages in a contract hire to some. For instance you will have a fixed cost each month so your monthly price will stay the same for those two or four years, depending on your contract. You will also receive a lower rate for your monthly fee than you would if purchasing a vehicle to own. This is because you technically again, do not own the vehicle. You are more or less borrowing it from the company. And as you know there are disadvantages to a contract hire such as not being able to own this vehicle after your contract is up. If you fall in love with this vehicle you will not be able to call it your own. You would have to turn around and purchase another vehicle like this one. It would not be the same which you have driven for those few years. Another disadvantage for some is the VAT on rentals which is only fifty percent which you can claim. So make sure you are aware of each pro and cons and what would best suite your lifestyle or needs. Many who just need a vehicle more for cruising on the weekends with friends or just another vehicle to use during the week will choose to lease a vehicle rather than purchase. You can switch the vehicle make and models every time your contract is up if that is your choice. It is quite flexible when leasing rather than owning especially if you are someone who needs change constantly. Category Automotive Marketing Author HIMANSHU NARANG Add To Favorites Print This Article Email Article To A Friend Post Comments   Rate This Article (0) 1 - Poor2345 - Good678910 - Excellent Added On 2009-09-26