L - Lease

Monday, June 05, 2006

Lease - Company drivers can choose to hire their cars for a set period, paying a monthly fee. Contract hire is known as an 'operating lease' while leasing is technically a 'finance lease'.

The main difference is that under contract hire, the responsibility for the car remains with the leasing company, whereas with a lease it is with the driver.

Another difference is that at the end of the term, contract hire cars always return to the leasing company, but under a straight lease, the driver may be able to buy the car. (See Contract hire.)


Glossary

Want to know the difference between your APRs and your PCPs? Our Glossary will guide you through the minefield of car-buying terms.