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Contract hire, also commonly referred to as ‘vehicle leasing’, is a long-term rental agreement. It allows businesses to take out hire agreements for set terms, usually between 24 and 60 months with the agreements being tailored to the customer’s business requirements. The business will then pay via fixed monthly installments and when the contract is over, the vehicle is returned to the leasing company.
There are many advantages to leasing company vehicles, rather than purchasing them. Here are our top 3:
1. Easy Cashflow Management
Fixed monthly costs enable accurate monthly budgeting and helps improve your cash flow for the length of the contract.
Contract hire will take away the hassle linked with purchasing a company car or van. The administration will be completed by the leasing company and they will also supply you with on-going advice and support. You may also add maintenance and breakdown cover to your package (which can be added to your monthly payments) so that in the event of a vehicle breakdown or accident you don’t have to worry, or find cash to fix the problem. Leasing continues to be hassle-free when it’s time to change vehicles. When your contract comes to an end, you just need to return the vehicle – you won’t have to worry about trying to sell it on.
3. Money Saving
Perhaps the most important added value of commercial contract hire, is that contract hire can save you money. VAT registered companies can claim 50% of the VAT costs back when the contract comes to an end, and if the vehicle is solely used for business purposes, then 100% of the VAT can be reclaimed. As well as the tax benefits, the business will spend significantly less each month - up to 60% - than if they were to take out a hire purchase contract! In addition, the initial cost of commercial contract hire is also less than when buying a vehicle. You will usually pay a smaller deposit and if you opt for maintenance and breakdown cover, you’ll also avoid larger costs should the vehicle require them.
If you are interested in vehicle contract hire for your business, talk to the team here at My Big Green Fleet. We offer great deals on vehicle leasing across South Wales, including Newport, Cardiff, Swansea, Bridgend, Bristol and beyond. Give us a call to see how we can help on 08451 634141 or click here to contact us.
* Please note: All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer. All offers are subject to change at any time and are subject to finance approval and vehicle availability. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could effect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication.
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My Big Green Fleet Ltd
1A Sony Technology Centre
My Big Green Fleet Ltd is an Appointed Representative of http://automotive-compliance.co.uk Automotive Compliance Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows My Big Green Fleet Ltd to act as a credit broker, not as lender, for the introduction to a limited number of finance providers only.
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