Contract Hire is the popular way for an organisation to run cars and vans: minimising risk, improving cashflow and reducing operating costs.
You lease the vehicle over an agreed term and mileage for a fixed monthly rental but without taking ownership. This minimises your initial outlay, so you can invest money in your business rather than depreciating vehicles. You can generally extend the term for flexibility too.
Most contracts include maintenance, so your rental can cover servicing, tyres, brakes and general maintenance costs with your only other expenditure on insurance and fuel. Replacement vehicles can also be included in the rental, or we can supply this on a pay-on-use basis.
A key attraction of a Contract Hire package is that the risks of depreciation, interest rates and maintenance costs are removed but you also benefit from our fleet purchasing power on vehicles, parts and labour rates. What’s more as we recover VAT on the cost of the vehicle, this further reduces your costs.
Our expertise in managing maintenance spend and remarketing vehicles at the end of the contract ensures cost-effective, competitive pricing for you as well as an exceptional service. With our depth and breadth of knowledge and experience, we can support you in selecting the most suitable and cost-effective vehicles for your organisation and drivers, and keep you informed about market, regulatory and operational changes. We also take away the day-to-day operational administrative and operational burden of running vehicles – from taxing vehicles to supporting your drivers – so you can concentrate fully on running your business.
Benefits of Contract Hire
Access to fleet discounts on vehicles, parts and labour
Minimum capital expenditure – invest in your business, not depreciating vehicles
Fixed interest rates
Contract Hire company recovers VAT on vehicle purchase, reducing costs
Rentals are offset against taxable income for corporation tax
No depreciation risk
No vehicle disposal issues
Ongoing advice and support
Road fund licence provided
Fixed maintenance costs
Optional replacement vehicle or pay-on use Short Term Rental
Technical expertise to control costs and keep your drivers mobile