CONTRACT HIRE
Contract hire can reduce the financial burden and eliminate the administrative costs of company fleets regardless of size. It provides a tax efficient risk and optimises cash flow. Your company enters into a hire agreement for a fixed term and a fixed monthly rate. At the end of the contract we retain ownership of the vehicle which is returned to us.
The monthly charge includes the cost of the vehicle, depreciation, contracted mileage, plus any additional services you choose to include. This would normally consist of maintenance and servicing and full breakdown cover.
WHAT IS CONTRACT HIRE
Contract Hire is a form of vehicle leasing where you agree to take control of a vehicle for a fixed period of time but the vehicle it never actually yours to own. You agree to make fixed payments for the duration of the contract period. At the end of the period the vehicle is returned to the contract hire company. The payments are calculated based on the retail price of the car, it's expected value at the end ot the period taking into account expected mileage and depreciation.
BENEFITS OF CONTRACT HIRE
ᐅ Fixed motoring costs
ᐅ Hassle Free at the end of the contract period
ᐅ Low initial deposit
ᐅ New vehicle every few years
ᐅ Can include maintenance package for totally hassle free motoring
THE BENEFITS ARE AS FOLLOWS:
ᐅ Low initial payment typically equal to three monthly payments.
ᐅ 50% of VAT on Rental can be reclaimed and 100% of the VAT on Maintenance.
ᐅ Monthly costs are minimised due to our discounted buying power and because we can reclaim the VAT on the purchase, this is reflected in your payments.
ᐅ Funding is off balance sheet as all "risk and reward" resides with us.
ᐅ A maintenance inclusive arrangement eliminates all risks and costs associated with a fleet of vehicles.
ᐅ Your monthly costs are fixed, all you have to add is fuel and insurance.
ᐅ Provides you with known costs through the medium term which facilitates enhanced cash flow management.
ᐅ The absence of substantial capital investment enables you to better utilise your capital and credit lines to the benefit of your core business activities..
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