No risk, fixed monthly costs – the complete solution.
Contract hire allows a vehicle to be supplied over a fixed period for a fixed monthly rental (normally including maintenance) to provide a full operational solution. We have been providing businesses with contract hire vehicles since our company’s inception. You could say it runs in our blood. Available to a whole range of businesses, it is a method of funding that provides a fixed, manageable and cost effective solution for vehicle acquisition.We definitely know a thing or two about business contract hire, and can make sure we provide you with the best possible deal as well as help you successfully manage any size fleet. So what are the benefits of a business contract hire car?
Fixed monthly costs
Each cost is visible at the start and settled into a fixed monthly fee – that’s it. You can use your vehicle for an agreed duration and mileage that suits your business. The monthly cost takes into account the vehicle’s price when hired, its forecast mileage during the contract and its estimated residual value at the end. As long as you haven’t exceeded the mileage and the vehicle is in a fair condition, you can return it with no further cost. For an extra monthly fee we can take care of nearly every hassle associated with owning a car, whether it’s maintenance, servicing or replacement vehicles.
No risk
A vehicle loses its value as soon as it leaves the showroom. In a business contract hire deal, you return it to us at the end and we take the residual value risk. If you include things like maintenance and servicing, you are also protected from any unseen rise in these costs.
Free up capital
Leasing a vehicle instead of purchasing it means you are not tying up capital in a rapidly depreciating asset. You can invest the money you are saving elsewhere.
Claiming VAT
If you contract hire vehicles you can reclaim 50% of the VAT charged on the finance element of the rental and 100% on the optional service element. If you purchase the vehicle you wouldn’t be able to claim VAT. Another benefit is the fact we can reclaim the VAT on the purchase of the vehicle and pass this saving on to you.
Off the balance sheet
Vehicle leases don’t have to be recorded on a balance sheet, which improves your company’s liquidity ratio, gearing and return on assets.
Purchasing power
We have a long and established relationship with lots of manufacturers. Not only do we have a wide variety of vehicles available, but we can also bring you very competitive leasing rates.