When it comes to choosing a vehicle for either personal or business use, two popular options to consider are short-term leasing and contract hire. Both have their advantages, and it’s important you understand the factors that differentiate them before you make a decision on what’s right for your needs.
With this in mind, the team here at Meridian Vehicle Solutions has written this article to help you decide which leasing option suits you best. We’re trusted industry experts and offer both short-term and contract hire leasing agreements to our customers.
Flexibility
Short-term leasing provides maximum flexibility and is ideal for anyone seeking the freedom to change vehicles on a more frequent basis. For businesses, short-term leasing allows you to quickly adapt to changing circumstances, whether it's a fluctuating workforce or short-term business expansion. When you choose Meridian Vehicle Solutions, we offer short-term leasing options ranging between 3 to 48 months.
By contrast, contract hire is ideal for those who require a bit more stability and want to commit to a longer contract, usually spanning between 1 to 4 years. Whilst this leasing contract does offer less flexibility than short-term leasing, it allows for predictable monthly expenses, enabling you to budget effectively.
Costs
Due to its inherent flexibility, short-term vehicle leasing comes at a slightly higher price when compared to contract hire agreements. This pricing difference is a direct reflection of the added convenience and adaptability that short-term leasing offers. By contrast, contract hire often comes at a lower cost, with the lessee paying the same fixed monthly cost throughout the terms of their agreement. This monthly figure will include a pre-determined annual mileage, and can sometimes be modified to include servicing and maintenance as well.
Both contract hire and short-term leasing will offer you long-term savings when compared to purchasing a vehicle outright. This is because the cost of your lease covers the predicted depreciation of the vehicle, meaning you don’t have to worry about its future market value. Instead, you simply return the vehicle at the end of your lease agreement — it couldn’t be simpler! By opting for contract hire or short-term leasing, individuals and businesses can enjoy the benefits of having access to a modern and reliable vehicle, all whilst avoiding the expenses and uncertainties associated with vehicle ownership and depreciation.
Availability and vehicle choice
Both short-term leasing and contract hire offer you access to the latest vehicles without the need to buy them outright. This enables you to enjoy cutting-edge technology and the newest features at an affordable price. Whilst both options grant access to the latest cars, short-term leasing offers the added advantage of allowing you to upgrade vehicles more frequently. Therefore, if regularly switching cars to incorporate the latest technology is important to you, short-term leasing might be the best choice.
It is worth noting that, no matter which leasing agreement you choose, a reliable leasing company like Meridian will ensure prompt delivery of your new vehicle. What sets Meridian apart from other leasing companies is our extensive selection of vehicles readily available from stock. As long as we have the type of vehicle you’re looking for, you’ll never have to endure lengthy lead times.
Which is right for you?
Ultimately, the decision between short-term leasing and contract hire depends on your unique circumstances, preferences and requirements. If you prioritise flexibility, short-term leasing can provide the adaptability you need to meet changing demands. On the other hand, if budget constraints are a priority, contract hire is often a more cost-effective option. One thing is for sure — if you choose a trusted vehicle leasing company like Meridian, you will have access to a wide range of high-quality vehicles and competitive pricing, no matter which leasing agreement you choose.
At Meridian Vehicle Solutions, we understand the importance of finding the right leasing option to suit your needs. We offer both short-term leasing and contract hire options, and our experienced team is on hand to provide personalised advice and guidance. We have a range of vehicles available to view at our Chesham and Hemel Hempstead showrooms, and we can provide swift and efficient delivery to customers nationwide. Contact us for additional information regarding our services — we’re always happy to answer your questions or book a consultation.