SUV Leasing Deals

SUV leasing deals have increased in popularity as they provide a means of reducing the cost of vehicle ownership. In this article you will learn some of the benefits that these deals can offer.

There are two forms of leasing deals and they apply to businesses and individuals. The former is known as Contract Hire and the latter is known as Personal Contract Hire. In essence there is very little difference between them, the major one being VAT. VAT registered companies do not pay VAT on Contract Hire whilst VAT is charged on Personal Contract Hire.

Both plans involve leasing the vehicle for a specified period and keeping to an agreed maximum mileage. There is generally a small up-front deposit to pay followed by monthly payments for the term of the car lease. Leases can be negotiated for any time period but the period is typically 12 to 48 months.

Leasing offers large financial incentives when compared to buying. In the case of a business a purchased SUV would involve a substantial capital outlay and would appear on the balance sheet as an asset which would lose its value at a rapid rate.  The costs of financing a leased vehicle would simply be written to the P&L account.

An individual would also see considerable cost savings as they would be paying for only the SUVs depreciation for a fixed period rather than having to finance the full purchase price. The saving are even more substantial if it would be necessary to take out a loan to finance the purchase. Interest rates on vehicle loans are quite high and financing a SUV purchase, such as a Peugeot leasing deal, with one can be very expensive.

Although longer term deals work out cheaper than short term deals, most people find that they are able to swap their vehicles more often with contract hire than they would be able to if they had to buy a new SUV every two years or so.

Only consider an SUV leasing deal if you are prepared to treat your leased vehicle as if it was your own. Cars must be returned in a reasonable condition for their age otherwise there might be a surcharge to pay.