A Guide to Contract Car Hire

Wouldn’t it be nice to take delivery of a brand new vehicle, safe in the knowledge that any maintenance and repair, if needed, is taken care of, leaving you to drive the car worry free. This can become a reality with contract car hire, which is a great way for both individuals and companies to get their hands on a new car without the financial risk that is associated with it.

 

The contract hire company sets out a monthly charge that you pay for a set term. During this time that company keeps the ownership and you return the car to them at the end of the hire period. All maintenance of the vehicle can be carried out by the contract hire company if an additional maintenance package is opted for.

 

If you are using contract hire for business purposes then there are several benefits to taking advantage of it. The risks associated with maintaining a company car are reduced greatly which gives you the freedom just to have a fixed monthly payment, car insurance and fuel to take care of. All administration involved in providing and removing the car is taken by the contract hire company.

 

Since the payments are fixed every month, you can budget your company cash flow with ease. VAT can be claimed back by the contract hire company which allows them to pass on savings to you in the form of lower monthly payments. Any vehicle on a contract hire package will not show up on a company balance sheet.

 

This can improve your company’s borrowing rate by removing capital assets.