Jeep Buyer

Well sorry if I ruffle a few feathers but Land Rovers have proven time and again they will leave the Hummers and the Jeeps for dead in hard going.

Car leasing, personal contract purchase, contract hire, lease purchase and car loans are all different ways to finance the cost of cars and vans. The variety of vehicle financing options available today can be confusing so I thought I would focus on ‘contract hire’ and explain how this technique works.

Leasing a car basically takes care of one of the biggest financial issues associated with acquiring a new vehicle which is depreciation. As soon as you’ve been handed the keys to your brand new motor its value falls through the floor.

When you take out a new car lease the residual value of your chosen car or van will be calculated by your supplier. This is the estimated value of the vehicle at the end of the agreed lease period, usually 2 or 3 years, based on your expected mileage in that period. The calculated residual value of your chosen vehicle is then deducted from either the current manufacturers retail price, or a value agreed with the leasing firm, and you will pay the remainder through your monthly lease payments. So the higher the residual value in comparison with the current value, the less you will be paying each month.

Contract hire is a vehicle financing method that has maximum benefit for customers who are registered for VAT, so it is most suitable for businesses and the self-employed. If your vehicle is used exclusively for business purposes you can reclaim 100% of the VAT. Even if you use your car or van for some personal use you can still reclaim 50% of the VAT.

A contract hire agreement means that you have actually hired the selected car or van for an agreed period, usually between 1 and 5 years, during which time you will pay the agreed rental, based upon mileage. At the end of the agreed contract hire period, as in the case of car leasing, the vehicle is returned to the supplier. You will not encounter any painful surprise disposal or depreciation costs.

Contract hire can optionally include full vehicle maintenance which may include routine servicing and replacement tyres. Up to 100% of your contract hire rental charges can be offset against your taxable profits and minimal capital outlay is required.

It’s no surprise that contract hire is the favoured vehicle financing option for many businesses and self-employed people.

For cheap car leasing I recommend Nationwide Vehicle Contracts.

I LOVE driving my black 2002 Wrangler Sahara (the Black Widow) w/ the soft top down, dew rag, tank top and jammin’ to my tunes. It is the best

It’s an ‘88 Comanche 4.0L 4×4. I bought this truck in 98 for $5,000 when it was 10 years old with 56,000 miles . Now it’s 21 years old with 130,000.

It’s an ‘88 Comanche 4.0L 4×4. I bought this truck in 98 for $5,000 when it was 10 years old with 56,000 miles . Now it’s 21 years old with 130,000.