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Contract Hire and Leasing

While many may be missing the trick and buying over leasing, 2011 is forecast to be a year of growth in the contract hire and leasing sector as credit continues to be hard to find.

Are People Missing a Trick?

A recent report in The Telegraph highlighted that companies and individuals may be missing a trick when it comes to contract hire and leasing. Those who regularly change their cars every 3 to 5 years may well be better placed considering contract hire and leasing. This is particularly applicable to the higher ticket marques such as Audi, BMW and Mercedes.

Vehicle leasing can in many circumstances be cheaper than the interest on a loan and leasers avoid paying VAT. In this period of austerity, where banks are increasingly reticent to lend money, companies in their droves are turning to contract hire rather than buying.

While contract hire is often most associated with companies, individual leasers who regularly change their cars are also ideal candidates for contract hire. The financial benefits are of equal importance. While individuals may not be able to avoid the VAT, the monthly repayments are often significantly lower than any loans and there is no upfront cash deposit.

Audi, Mercedes and BMW Leading the Way in Contract Hire

Industry analysts predict that in 2011, the number of Audi, Mercedes and BMW vehicles leased will soar as more and more companies and individuals turn to the more exclusive brands. The Audi A7, due to hit our shores in January 2011, is projected to be a popular model for next year. Not to be outdone, Mercedes is currently jostling around for greater market share which will no doubt benefit the contract hire and leasing market.

Contract Hire and Leasing - What Happens on Completion of Contract?

For the contract hire company, the more exclusive brands are also attractive as their residual value remains stronger than other brands over the contract hire period. This presents the contract hire company with the option to sell the car on completion and achieve a good market price for the car. The leaser is also well placed to buy the car at a competitive price, safe in the knowledge of fully understanding the car's history.

Contract Hire into 2011 and Beyond

While the economy is beginning to show moderate signs of recovery, 2011 is predicted to be a continued period of cutbacks and decreased access to borrowing. Analysts forecast that the contract hire and leasing market will continue to grow as a result, offering both companies and individuals a step into the automotive industry. The diversity of car brands is also expected to grow with companies offering greater packages aimed at individuals finding it hard to secure credit.

Swiftlease Vehicle Leasing and Contract Hire

Swiftlease is well placed to meet all your vehicle contract hire needs and offers a full range of car brands including Audi, BMW, Mercedes, Nissan and other leading marques.

To find out how the company can help you secure a car, call 0844 357 2495 today.

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