Don’t dream it drive it!

Vehicle contract hire has always been popular with companies, but now more and more individuals are getting in on the act and seeking the benefits of vehicle contract hire for their car of choice.

Vehicle contract hire is agreed for a set period of time, normally between 24 & 48 months. Over the duration of the leasing period a fixed rental amount is which is based on the mileage estimated over the period of hire. What can also be included in the monthly payments are payments for any maintenance that may be incurred while the vehicle is being leased.

This type of hire, as mentioned, is a popular choice for VAT registered companies who don't want to run the financial risk of running their own vehicle fleets, and are looking to reduce the burden of administration issues when buying, maintaining and disposing their vehicles. Contract hire also enables the company to reclaim at least 50% of VAT on every payment, and 100% of the servicing element of the rental cost. In terms of comparing vehicle contract hiring with more traditional ways of obtaining vehicles, such as cash, bank loans or hire purchase, contract hire becomes a much more effective option when looked at in this way.

For the business user, there are many benefits to vehicle contract hire:

• Fixed monthly costs enabling a company to budget more easily and have a predictable cash flow
• Free choice of vehicle allows the company to choose any type, make or model that suits the companies needs
• The vehicle will not appear as an asset on a company's balance sheet as the car leasing company owns the vehicle, improving the company's borrowing ratio
• Reduced administration with things such as delivering of the vehicle, current tax disc and breakdown service, all sourced by the lease company
• VAT benefits

>view our latest offers on a wide range of cars