Leasing a car is a great way to avoid the hassle of saving up to buy a brand new vehicle and an easy way to drive one of many manufacturers’ latest models.
You may not own the car yourself, but through paying monthly instalments at least it is easy to budget for all your automobile bills each month, as maintenance, repairs and breakdown cover are often included in the costs. There are many cars available to lease at Imperial Cars, but what happens when your contract runs out?
Who Owns It?
The ownership of your leased vehicle will depend on the type of leasing contract taken out. There are differences between business and personal leasing deals as to who owns the car at the end. The finance company takes ownership of the car at the end of these contracts:
– Business contract hire
– Business finance lease
– Personal contract hire
You or your business own the car at the end of these contracts:
– Business contract purchase (depending on chosen option)
– Business lease purchase
– Personal contract purchase (depending on chosen option)
– Personal lease purchase.
As shown, some leasing contracts will require you or your business to make a decision at the end of the lease as to whether you wish to pay an additional fee or meet certain agreements, to take ownership of the car or put it in the hands of the finance company.
Collection and Inspection
If you decide to get rid of the car at the end of your leasing period, you will need to arrange a collection time. The finance company will not be expecting a brand new car back, but if it has any severe problems or they find you have massively gone over the agreed mileage, expect some extra charges. It is therefore a good idea to clean your car to a top standard and fix any problems before returning the vehicle.
Future of the Car
It will be up to whoever takes responsibility for the leased car as to what happens to it next. Anyone who decides to take ownership of it is free to drive it or sell it on if they wish. While if the finance company takes it back, and assuming it is in good condition, they are likely to sell it on as a used car rather than lease it out again or send it to scrap.
