Cars on Contract aims to help you to understand the different choices that you have when it comes to leasing a car or getting a car on contract. Car Leasing has many advantages, especially for businesses and sole traders. With a car leasing agreement it allows for a fixed budget to be set for the cost of a car, on a fixed term. The payments are also often cheaper than they would be with a traditional car loan.
A car leasing agreement is set up at the start of the term and there are different lease agreements available that will give a business some flexibility in terms of the length the vehicle is kept for and the cost per month that needs to be paid. The term of a lease agreement can be from 12 to 60 months, and it is normal that the vehicle is kept for the whole term. There may also be an agreement within the car leasing contract that states how many miles are allowed per year of the lease. There may be an extra charge if the mileage exceeds the agreed amount in the contract, so this is something to watch out for.
