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Contract Hire

 

"The Benefits of Contract Hire"

Release Capital - If you are currently purchasing your vehicles through your own funding, you are inadvertently tying up a valuable proportion of your company’s financial resources. Contract Hire releases these funds for more profitable use;

Accurate Budgeting - With Contract Hire, all costs are calculated by experts and built into a fixed monthly payment. Vehicle costs can be forecast accurately for up to five years. Paperwork is almost eliminated and budgets tightly controlled;

It tackles Depreciation - Owing to our buying power, we can purchase vehicles at cheaper rates. Efficient vehicle disposal always enables the leasing company to accurately assess resale values. Only the minimum depreciation is passed on to our customers, resulting in realistic rentals;

It improves Cash Flow - Contract Hire will improve your company's cash flow through low initial outlay;

Freedom of Choice - We can supply all makes of cars and vans at competitive Contract Hire rates. You choose the model, colour, specification and extras to suit you. We offer expert and unbiased advice on all makes and models that might meet your needs and budget;

Off Balance Sheet Funding - Contract Hire is classed as an operating lease, which means that the vehicles do not show as depreciating items on your balance sheet. Rentals are classed as a revenue expense and are shown in the profit and loss account;.

A new lease accounting standard (IFRS16) was published last year and came into effect on 1st January 2019. This will apply to all organisations reporting under International Financial Reporting Standards which includes PLCs, foreign owned companies and some public sector bodies. For UK limited companies, the new rules are expected to become effective on the 1st April 2022.

All leases will be reported on balance sheet under the new rules, whereas previously operating leases (including contract hire) were reported off balance sheet. This applies to leases of property, ships, planes, trains, plant & machinery as well as motor vehicles.

Reduces Administration - Are your management and staff currently weighed down with time-consuming vehicle administration? Contract Hire releases them from this burden, so they can achieve more profitable objectives. Contract Hire significantly reduces paperwork. The Road fund licence is supplied and renewed automatically;

It enhances Company Image - With Contract Hire you will always have modern and presentable vehicles. Contract Hire will also give you a disciplined replacement program. Remember, your competitors may already be enjoying these benefits!

VAT Benefits - Contract Hire has many VAT benefits. The leasing company can reclaim the VAT on the purchase price of the vehicle and pass on this benefit to our customers. Also, once the vehicle is on the road, you can claim back 50% of the VAT on the finance element (if the vehicle is available for personal use or 100% if only available for business use) and 100% of the VAT on the maintenance element of the rental payments;

Peace of Mind - With monthly payments fixed over the entire contract period and a range of optional extras, Contract Hire takes away the worry and trouble of managing your company’s cars and vans;

A Selection of Cost Options available

  • Breakdown recovery service, including Home Start & Relay
  • Replacement Vehicle for mechanical breakdowns or accidents
  • Routine maintenance & unscheduled mechanical repairs including replacement tyres, batteries & exhausts
  • GAP Insurance
  • Car Insurance

No cost Option

  • Accident Management