Personal Contract Hire - In this type of lease one has to pay monthly rent for a fixed contact term. The car is return back to the owner at the end of the term.

Purchase - It provides an option to the leaser to buy the car at the end of the term. Companies may offer varying terms from 3-5 years. However, there is no obligation on the part of the user to buy the car at the end of the term.

Hire - This type of lease is offered to executives working for companies who are provided with transport allowance (for a car) according to their contract. This type of agreement takes places directly between the executive and the car leasing company. Hence these companies insist upon the proof of transport allowance and agreement with company to lease out their vehicles.

Business Contract Hire - Business contract hire is similar to Personal Contract Hire. The company gets various benefits under this scheme.

As the car lease finance does not include maintenance costs and there is an option to own the car after the lease period is completed, it is best for those who want to own cars, without the documentation and loans involved in new car purchase. Along with this tax benefits can also be availed. There are few companies in India offering these schemes currently, but it is slowly gaining acceptance as mode of financing.

So, if you are a car freak, like to change cars frequently and don’t want to pay heavy down payment can go for this option