Business Contract Hire

Contract hire or business contract hire is probably one of the most well known methods of obtaining vehicle funding for both the business or corporate user as well as for the private sector market and has historically been the popular choice of the business community for their vehicle requirements. Whether your company has a large fleet of vehicles, or just one, using business contract hire will provide you with a simple and cost effective solution to funding your company motoring.

Contract hire for the business user makes sound economic sense – there is a small payment at the start of the contract hire and this is followed by equal monthly instalments over the life of the vehicle’s contract hire. There are no depreciation costs to factor in to the company’s budget and no disposal costs at the end of the business contract hire. All the vehicles that Contract Hire UK supplies are sourced from UK franchised main dealers. Over the years we have built up strong relationships with dealerships in all the major franchises, particularly Mercedes Benz, BMW, Audi, Land Rover/Range Rover etc. enabling us to obtain competitive manufacturer discount rates unavailable to the general public which we are able to use to make to our business contract hire rates extremely competitive. Additionally, the vehicle is delivered directly from our UK franchised main dealer supplier directly to the end user, whether to a place or work or a home address, and at the end of the contract hire is collected from an agreed location. Before the business contract hire period expires we contact the end user to discuss the options for replacing the vehicle and in due course arrange the collection, which can be done to tie in with delivery of the next vehicle and the start of the next contract hire period to ensure that there is no loss of motor provision.

We can and will provide a contract hire agreement tailored solely to your requirements – for the car, the business contract hire duration and the contracted mileage. Additionally, you have the option to include any or all of the following ‘add-ons’: maintenance, tyres, breakdown and recovery, roadside assistance and relief vehicle. The contract hire monthly costs will remain the same throughout its life, and most business contract hire agreements will include the road fund licence for the whole of the business contract hire life – with the new licence disc arriving by post shortly before expiry of the old one – no more trips to the Post Office to renew the licence and no worries about having an unlicensed vehicle. Using their expertise our team of advisors is able to source not only the best discounted price for a car, truck or van for your business but also the most competitive business contract hire finance package. We have access to the UK’s top car contract hire and leasing funders and our experience in this field enables us to exactly tailor the contract to your needs.

The vast majority of vehicles that we supply on contract hire are new and sourced from our UK based dealer franchised network, or are ‘special offers’ from our funders themselves, again supplied by UK main dealer franchises. Every vehicle supplied by Contract Hire UK on business contract hire is supplied with at least 12 months warranty cover with breakdown/roadside assistance cover as supplied by the manufacturer; this is always for at least the first 12 months and after delivery you will receive full details of how to access these services.

Contract hire/business contract hire vehicles do not suffer the depreciation costs inherent in company-owned vehicles and there are no disposal problems – the vehicle will be collected as described above. Contract hire is the only “off balance sheet” car leasing option, with no risk of ownership. There is very little capital outlay at the beginning of the contract hire period – usually a payment equivalent to three monthly rentals is required before delivery, with the monthly payments spread over the duration of the business contract hire period. Additionally, parts of the contract hire payments are VAT-reclaimable. Your company’s motoring costs are fixed for each vehicle over the term of the business contract hire - excluding of course variables such as fuels and insurance – making it simple to calculate your contract hire motoring costs when setting monthly or annual budgets.

After your first contact with Contract Hire UK your enquiry will be given to an account manager, who will look after you throughout the process and will provide you with information and quotations to enable you to make your decisions. At that time you will be asked how long you wish the contract hire to run, what your projected annual mileage will be and whether you wish to include any or all of the following additions in the business contract hire: service, maintenance and repairs including tyre replacement, breakdown cover, road-side assistance and relief vehicle. You may have a vehicle, or vehicles, in mind or you may wish to discuss available vehicles before making a decision. Your account manager will provide business contract hire quotations on the vehicles you have discussed and if you have a particular budget then your account manager can advise which vehicles are suitable for your contract hire requirements – it may well be that by taking a vehicle on business contract hire your budget will provide you with a better vehicle than you had originally planned. Contract hire/business contract hire often makes the unaffordable affordable.

Contract hire durations can be up to five years, although the industry norm is 2 or 3 years, and we can tailor your corporate or business contract hire requirements to your own specific timescale – it does not have to be in annual increments. The monthly payments for a contract hire/business contract hire are calculated by using the purchase price of the vehicle, the projected annual mileage and the ‘add-ons’ (if any) required. This figure is then broken down into an initial rental period (usually a sum equivalent to three monthly rentals) which is due before delivery and then a monthly sum for the life of the contract hire – this is known as a ‘spread rental’ contract hire or business contract hire. We are also able to provide a ‘terminal pause’ rental contract hire or business contract hire, which is where the rental sums are divided up to make the final three months of the contract life ‘rental free’ – the equivalent amount having been amalgamated into the preceding monthly contract hire rentals. As an example, a three year business contract hire on spread rentals with the initial rental payment equivalent to three months in advance would be written as ‘3+35’ and a terminal pause business contract hire (again with the initial rental payment equivalent to three months in advance) would be written as ‘3+33’. Either of these contract hire/business contract hire types can be provided by Contract Hire UK.

Here at Contract Hire UK we pride ourselves on our high levels of personal service, which ensures that both our business contract hire and our personal contract hire customers return time after time to ask us to manage their contract hire requirements. We also have a Customer Care department, available to help with any queries that you may have during the whole of the time that your contract hire is running. They will contact you after delivery of your vehicle to introduce themselves and their services to you.

Whether for one vehicle or several, whether they are all the same or for a mixed fleet, contract hire will provide the vehicles and funding to enable you to drive your business forward. With nearly twenty years of operating in the car leasing, business contract hire and personal contract hire market place, Contract Hire UK is your one-stop website for all your contract hire needs.

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