Christian Debt Recovery

Benefits Of Long Term Debt Financing

September 12th, 2007 |

Author: Gavin

benefits of long term debt financing

Long Term Car Lease or Rent

It appears something of a common mis-conception of leasing and renting being the same thing.

They are not.

Furthermore, a common attribute to Renting a car long term is that it is more expensive than leasing. This is obviously a problem with the way the economy is stretched at the moment. With the introduction of a higher VAT rate in January 2011 of 20% with the possibility of raising to 25% the economies debt of approximately £75,000 per person in the UK is some-what astonishing. So why part with hard earned cash?

I have researched the pro’s and con’s of Leasing and Renting options and wish to share with you a few each. Bearing in mind I have looked at companies surrounding Gatwick and the M25 motorway.

The Pro’s of Leasing

Generally upto 50% cheaper than renting
Choice of Car – normally brand new

The Pro’s of Renting

Minimum term of half a day – literally
Option to return vehicle early without being penalised
Option to change vehicle when renting long term
Renting is not subject to Finance deals or Credit Scoring
Rental Company manages maintenance and servicing

The Con’s of leasing

Minimum terms – normally start at 24 months
Returning early can be extremely expensive
Leasing is subject to Credit Scoring, Income and debt are important
Defaulting can ruin your credit score
Leasing is ‘getting a loan’ with high interest payments

The Con’s of Renting

Vehicles are normally rented continuously
Fixed return days / although some renters allow you to extend
Generally only the companies current stock of makes and models are available
Upto 50% more expensive than leasing

To summarise

Renting, although more expensive, is a favourable option in the current economic climate. When providing vehicles to staff on probationary periods / Temp Staff or even to cover seasonal peaks you have the option to return early without being penalised. However, with leasing, you are literally stuck with paying for the car whether you need it or not for the full term of the finance option offered on collection.

So, what rental company would you choose?

In Sussex you have the option of 3 main contenders. Forget the “big-boys” such as Sixt, Europcar. They have their benefits, but can get costly.

For older cars you could try Choice Rentals. For a fixed fleet of vehicles Apex Rentals is a good option. Personally I prefer Henfield Hire in Horsham. Vehicles generally no older than 3 years with an option to have a vehicle brought in for you. I was asked to give 2 weeks notice for a 4×4. It arrived within the 2 weeks and just in time for the snow!!

About the Author

Just a simple Relaxed man with a family, looking to simplify life’s most demanding chores

Read more: http://www.articlesbase.com/moving-and-relocating-articles/relax-and-take-it-easy-3832683.html#ixzz182GTu0xL
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