The captive leasing company is one which is wholly owned by a leasing-asset-production or distributor company. The Captive leasing company usually is specialized only in the leasing of the assets produced or distributed by the mother company. The main aim of the captive leasing company is to increase the sales of the mother company, not […]
Contract Hire
A form of leasing popular in the UK for financing cars. This service is often used by companies. When individuals use the service it is called “Personal Contract Hire” or “PCH”. This financing service strongly resembles “operational leasing”. The contract stipulates an initial deposit, which may be returned if no penalties are charged. Early termination […]
Contract Purchase
“Contract Purchase” is a form of leasing popular in the UK for financing cars. This service is seldom used by companies. When individuals use the service it is called “Personal Contract Purchase” or “PCP”. This financing service strongly resembles “financial leasing with residual value”. The contract stipulates an initial installment. Typical duration is between 24 and […]
Hire Purchase
A type of leasing popular in the UK and a few smaller European states. It is almost identical with “Financial Leasing” or “Contract Purchase”. “Hire purchase” is used mainly for vehicles and equipment, while “Financial Leasing” is used also for real estate. Hire Purchase contracts emphasize the obligation to purchase the leasing asset at the end […]
Insurance company
The insurance company is a specialized and licensed entity which offers insurance cover to various risks. This underwriting is effected through an insurance contract – i.e. the insurance policy. As lessors prefer to have full insurance coverage on their lease assets, the insurance companies become an important partner to each leasing deal and respectively the […]
Insurance density
The insurance density is the average amount spent on insurance by a person in a given territory. It is calculated by dividing the gross written insurance premiums of a country (or other areas) for a given period (usually one year) by the population of the country. The ID of Europe for 2018 was EUR 2.170, […]