Types of Leasing

Business & Personal Car Leasing Options

The main types of Car Leasing are Business Car Leasing and Personal Car Leasing.

In addition, there are Short Term Rental and Daily Rental which, although many categorize under Car Rental or Car Hire, could also be considered a form of Car Leasing.

• Business Car Leasing
• Personal Car Leasing
• Short Term Rental
• Daily Rental

The main difference between Car Leasing and Car Hire (or Car Rental) is the length of time you keep the vehicle. A typical Car Leasing contract is for 2-5 years, whereas a Short Term Rental contract is for 1-12 months. As the name suggests, Daily Rental is measured in days rather than months.

Business Car Leasing

Leasing company cars or vans is commonplace in business today, and businesses have appreciated the benefits of Car Leasing for many years, as it is a cost effective and tax efficient way of acquiring their company vehicles.

Our section on Business Car Leasing explains all the implications of leasing company cars.

And our section on Business Car Leasing Options explains the types of leasing contracts available to businesses.

Personal Car Leasing

Personal Car Leasing is for you if you are a private individual looking to lease a car for personal use, or in connection with your job (if you have opted out of your company car scheme and receive a car allowance or mileage allowance from your employer).

The two main types of Personal Leasing are Personal Contract Hire and Personal Contract Purchase, and I explain these in the Personal Car Leasing Options section.

Short Term Rental

Short Term Rental is used mainly by businesses who need to lease a car or van for a short period of time or on a temporary basis, and is ideal if you don’t want to commit to a 2 or 3 year company car lease.

There are many situations where this is a better solution for businesses than leasing company cars, as explained in our Short Term Rental section.

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