Contract Hire is an ideal product for companies who don't want the financial risk of running their own car and van fleets, and who are looking to reduce the administrative burden of buying, servicing and disposing of their vehicles.
Your company simply hires the vehicle for a pre-determined period at a fixed monthly rate. We retain ownership of the vehicles - and the risks associated with them - and at the end of the contract they are returned to us.
The key benefits of contract hire to the business user are:
Off balance sheet funding
Under contract hire your vehicles do not appear on your company's balance sheet as they are owned by us. The removal of capital assets from your balance sheet can enhance a company's gearing (borrowing) ratio.
Fixed monthly cost
A fixed monthly payment is charged over the life of the contract and the initial up front payment is normally just three month's rental. Fixed monthly costs for the period of the contract makes budgeting much easier. In turn more accurate budgeting improves your company's cashflow.
VAT Benefits
Contract hire has many VAT benefits in that we can claim back the VAT on the purchase price of the new car. That means we pass on these benefits to our customers. Once the vehicle is on the road, you can then claim back 100% of the VAT on the servicing element of the rental cost and 50% of the finance rental cost.
Reducing your Financial Risks
Managing the risks involved in running a vehicle fleet is all important and that's exactly what you can do when opting for contract hire. We take all the risks involved in everything from residual values and maintenance to interest rates. That leaves you to simply pay the monthly contract hire costs, insure and fuel the vehicle.
Reducing administrative hassles
As you are not supplying, servicing and disposing of your cars, administration for the fleet operator is kept to a bare minimum.
Wide choice of vehicles
We can supply all makes and models including both new and nearly new; click here for our online database.
What if I purchase my current fleet?
We have substantial experience in assisting our customers through the transition from more traditional funding methods to contract hire. This can be achieved by allowing us to purchase your current fleet from you, at an agreed price, immediately enabling you to take advantage of the various financial and administrative benefits for a fixed monthly rental. For more details on our sale and leaseback product click here.
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