UK Contract Hire Vehicles

Contract Hire services provide road out of the credit crunch

Why burden your balance sheets with depreciating company vehicles, their maintenance and other unforeseen costs at times of a spiraling credit crisis. Gear up for service and maintenance free contract hire facilities, if you change your fleet at regular intervals or wish to have sleek vehicles at your service all the time.

Contract Hire is a service which offers you leased vehicles for personal or company use for a fixed period of time at a fixed monthly amount. The vehicles continue to be owned by the leasing company and are handed back after the period of hire is over. Since the ownership of the vehicle is retained by the lending company, all risks and recurring costs, be it maintenance, depreciation or any other, are borne by the lending company itself. The amount to be paid monthly varies according to the duration of contract, estimated mileage during this period and the anticipated resale value of the vehicle at the end of the contract. As contract hire requires you to pay just a fixed monthly rent, it releases capital from your current vehicle by selling it and enables you to invest the larger amount acquired for critical business needs.

Taking all additional costs off your shoulders, a contract hire service improves your company’s gearing and delivers off balance sheet funding and better liquidity.

Apart from 100% maintenance rental, you can reclaim 50% of the VAT on the finance rental under contract hire, whilst no VAT can be recovered in case of a new car purchase.

Leveraging its extensive experience, a leasing company can help you boost your revenue and drive down the cost as you do away with cost of running company vehicles and save taxes.

Benefits of Contract Hire

• Off Balance Sheet funding improves cash flow and offers additional funding opportunities and therefore contract hire assists in the smooth running of your organization.
• No large lump sum cash payment is required for contract hire.
• Substantial VAT and other Tax savings
• Monthly payments of a short-term contract hire agreement are significantly lower than that of a car loan.
• You can have access to latest car designs and newer models on a regular basis
• Selling or scrapping of vehicles are taken care of by the lending company
• You don’t have to worry about the maintenance bills and road taxes. You will have access to improved manufacturer discounts on purchase as well.

With UK contract hire sector registering robust growth, a number of contract hire companies are taking to the fast lane and vying with each other to establish their customer base. This opens up an incredible opportunity for you to relax behind the wheels of your choice at superb prices.