Thursday 29 November 2012

What is Business Contract Hire? Carlease UK explain

By far the most popular form of car leasing is Business Contract Hire. This is because if you are looking to lease a business vehicle it is often the most cost effective way of doing so in most cases.  CarleaseUKoffer alternative funding methods, such as finance lease, the criteria for your decision will lie in such things as whether or not you want to keep the vehicle and also whether you want the asset on or off your balance sheet. These are not the only reasons for your decision; at CarleaseUK we can help you make the choice.
 Business Contract Hire is commonly used to supply companies that have fleets and at CarleaseUK we are dedicated to making sure that you can find the optimum contract hire deal suited to your business. Business contract hire is often very popular because of the way it is set up and there are many advantages to using it to create your fleet.

 So how is Business Contract hire set up? Here is a run down of all of the main features that you might expect:
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The car leasing deal is set up so that your business will get use of the vehicle that you hire for a set mileage and time period that is decided upon when the deal is created. This is tailored to suite your business and will affect the cost overall.

 A low initial payment will be required up front followed by  fixed monthly costs for the term of the lease.  The initial payment is between 3 and 6 monthly payments, paid upfront, depending on how you want to set up your contract hire model. The cost of the payments will depend on things like, the vehicle, its initial cost, mileage and the value of the vehicle at the end of the contract plus the term of the lease.

 So why choose Business Contract Hire?  There are a number of things about Business Contract Hire that can save time and make it a popular business choice:

 For example, an extra fee on top of the standard monthly payment the leasing company will  take care of  maintenance including your tyres and vehicle replacement which can be a big an interruption.  The servicing cost at the garage is then paid for by the leasing company.  Tyre replacement includes blow outs as well as replacements and can normally by arranged at your place of work or at worse locally.

 Contract hire can also give you a lot of flexibility with setting up your fleet of vehicles, allowing you to change them around fairly often (standard leases will last about 2-3 years) without having to deal with the loss of value on the vehicle. During this period, subject to the set up of your business, you can offset the whole of the cost of the lease rather than the cost being still written down many years after the vehicle has been replaced.  Also,  capital that you would normally invest in company vehicles can be freed from your budget to be spent elsewhere while you are paying the low monthly payments.

 If you are interested in Business Contract Hire then why not speak to us at CarleaseUK. We are committed to getting you the best deals possible.

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