personal and business car leasing made simple

personal and business car leasing made simple

 

Contract Hire is an effective vehicle leasing product that been used in the UK for a number of years with as many as 60% of the vehicles on the road in the UK today being Contract Hire. It may be called a few different names from operating lease to simply vehicle leasing but most tend to refer to the product as straight forward Contract Hire personal and business car leasing made simple

Contract Hire allows businesses to lease vehicles for a fixed monthly cost. The Contract Hire Company then take care of all the hassles usually associated with arranging vehicles from ordering to arranging delivery to the managing of vehicle down time and replacement cycle.personal and business car leasing made simple

Fixed cost maintenance schedules can also be added to the agreement.  The maintenance package tends to include all servicing and tyres as well as items such as brake pads. If you take this option you can be safe in the knowledge that the total vehicle cost each month does not change throughout the agreement regardless of any work carried out. Businesses like this option as you can accurately budget a vehicles costs over a long period of time without receiving those dreaded garage invoices. Road fund licence is also included on all agreements for the life of the vehicle personal and business car leasing made simple

Getting conventional car loans can be very expensive in comparison as you are funding the whole value of the vehicle. With Contract Hire you are funding the difference between the ‘on the road’ cost and end value of the vehicle, commonly called the residual value. The discounts that are offered for vehicles funded through contract hire are also better than discounts offered when purchasing a vehicle so overall it tends to be a lot more cost effective personal and business car leasing made simple

personal and business car leasing made simple

Contract Hire is an off-balance sheet style of funding unlike purchasing a vehicle. This in-turn improves company gearing ratios as you don’t have large depreciating assets on your balance sheet. VAT registered companies can also claim back on cars 50% of the VAT on the finance element of the vehicle rental and 100% of the VAT on the maintenance elements of the vehicle. 100% of all VAT is reclaimable for commercial vehicles.

personal and business car leasing made simple.Most companies tend to take contract hire agreements over 36-60 months with three months rental as the initial payment. The deposits can range from 1 months rental in advance to the normal 3 payments in advance.  Contract hire is a product that really can be tailor made to your exact requirements personal and business car leasing made simple

Here is a re-cap of the main benefits of Contract Hire.

• Accurate Monthly Budgeting through fixed cost finance and optional maintenance
• No vehicle disposal issues or residual value risks
• Off Balance sheet funding improving your companies gearing ratios
• Reduced administration, often saving salary on fleet managers
• VAT recoverable on Rentals ( 50% on finance and 100% on maintenance for cars, 100% on commercials)
• Minimum capital expenditure, typically 3 payments in advance
• Ongoing advice and support from you dedicated account manager saving you time and money better spent on running YOUR businesspersonal and business car leasing made simple