What is Business Contract Hire?
When choosing to finance a vehicle, Business Contract Hire may be best suited for you and your specific business needs. There are numerous benefits to leasing a car which will not only benefit you, but also your business.
Car Leasing has quickly become one of the most appealing ways of having access to a vehicle without any of the troubles of actually owning it. Not having to deal with the road tax or general maintenance of a vehicle can also allow you to save money in the long run.
If you work in a business that is expanding then car leasing is one of the best choices available. After a contract is finished you are able to go straight into another car leasing agreement, meaning that you can have the latest model from your preferred car manufacturer.
There are different contracts to consider, but one of the best options which is best suited to companies is Business Contract Hire.
What is Business Contract Hire?
A Business Contract Hire agreement is a long term arrangement which allows a business to lease a car. The standard time span for one of these contacts is be anywhere between 24 to 60 months. After the contract is finished, the car just needs to be returned to us.
Business Contract Hire agreements are all calculated with a fixed monthly rental cost that is static over an agreed period of time, as well as an annual mileage limit. We try to be as accommodating as possible, which is why we allow you to customise both the agreement duration and mileage.
One of the things we focus on at Lease Car is making sure that the agreement is accommodating to your needs. If you find that you have agreed to a mileage limit, but you require an extension, then it is not a problem. You can change your agreement so that it works to your new mileage figure.
Who is Business Contract Hire best suited for?
A Business Contract Hire is mainly used by commercial enterprises, but there is no limit on the sector or industry which could take out a lease agreement. You might be a national corporate business, or even a sole trader, and Business Contract Hire could be a real option for you.
What are the main benefits of Business Contract Hire?
Something that attracts a lot of people to take out a Business Contract Hire agreement is the low initial rental. Compared to how much you could pay for buying a car, the difference is staggering.
When working within a business, costings related to vehicles can often be a worry. If you choose a Business Contract Hire agreement, it will have fixed costs which includes the actual leasing service, maintenance, servicing and even the road tax.
Being able to plan how much you use a vehicle is crucial within a business, and fixed costings makes it so much more easier. Any costings can be worked out well in advance before you even start using the car, so you will always be prepared.
By saving money through car leasing, you use the money to invest in other parts of your business, allowing you to grow.
When you start a Business Contract Hire agreement, you agree on a predicted level of depreciation. Any depreciation that may occur will not compromise your contract.
By not owning the vehicle, you do not have to worry about selling it on after your contract has ended. You can simply return it. Furthermore, in the same day as returning the vehicle, you can create another contract on a new vehicle.
When running a vehicle from within a business, it is important that you have correct paper work. We are able to handle all documentation that comes with a car; including tax discs, number plates, and MOT certificates. If you have any queries about any of these pieces of documentation then you can simply contact us and we can send a copy.
Many businesses do not realise that if you lease a vehicle exclusively for commercial use, you are able to claim back 100% of the VAT. Even if the car is used as a private vehicle, you are still able to reclaim at least 50% of the VAT.
LeaseCar and You
At LeaseCar, we have an extensive range of cars to choose from which can benefit you - as well as your business. Furthermore, all of our leasing agreements are tailored to the individual business.
If you have any questions or queries, please contact us today on 0344 745 1818. Alternatively, you can also speak to us on Twitter (@LeaseCar_UK).
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