Contract Car hire is an alternate for car buying. In outright purchase of a car we have to put a huge investment towards price of the car either in cash or in the form of a loan. Even for loan we may have to shell out some amount towards initial payment. The business car leasing involves initial payment of a nominal amount. In Contract hire or personal car leasing some leasing companies even allow lease without any down payment. Purchase of a car is a permanent cost for u whereas the lease can be availed only if you are in need of. There are 2 types of leases close end lease and open end lease. Under Close end lease the consumer return the vehicle to the leaser at the end of the lease period and no obligation rests with the consumer for maintenance of the vehicle thereafter.. After the lease period the lessee may avail the option of buying the vehicle at the residual price or market price as per the agreement with the leaser. Open end lease fixed the post lease financial risks on the lessee. However for business firm this can be included as business expenses. It is better to consult a tax specialist to know about the option suitable for the person.