Whether you're a business customer or a private buyer, here we cover the contract hire & leasing basics.
A vehicle is leased for a set amount of time, for a set monthly fee and an agreed mileage. Maintenance and servicing is often included and the car is handed back at the end of the lease.
Contract hire is very popular with sole traders and small businesses and company car drivers who are used to a minimum amount of hassle.
Unlike contract hire, the responsibility of the car's upkeep - servicing and so on - is with the driver, or his/her company. The car also may be bought at the end of the lease.
There are advantages for VAT-registered companies, who can reclaim 50% of the VAT on a contract hire deal and 100% of the VAT on a maintenance deal.
They are the names of the main contract hire and lease options available for private individuals.
Insurance is always the responsibility of the driver.
Leasing is more popular with private individuals who like the security of paying fixed monthly rates, but are happy to maintain the car themselves.
Most contract hire and leasing plans are for two to four years.
Everything you need to know about contract hire and leasing is in our feature '10 things you should know.'