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17th Oct 2017 - Give our team of Leasing Consultants a call on 01442 920 920 for a tailored quote !

Key Features of Business Contract Hire

Business Contract Hire (also known as BCH) is a fixed cost rental agreement, usually between 2 and 5 years. It is an efficient way for businesses to fund any number of vehicles for a set period and pre-determined mileage.

The vehicles are purchased by our selected funder and leased to the client; with manufacturer warranty and road fund licence included. Contract Hire is suitable for businesses looking to reduce the risk and capital commitments associated with vehicle ownership and fleet administration. It provides a fixed cost solution for the length of the contract with no residual value or maintenance risk (assuming fixed cost maintenance is taken). At the end of the term, the vehicle is simply returned to the funder with no option to purchase.

Always speak with your accountant before deciding on the best form of fleet funding for your company as they will be able to advise on any tax implications based on your businesses’ own circumstances.

Benefits of Contract Hire:

•Fixed term and fixed monthly budgeting
•Initial rental is adjustable to suit most budgets
•Contracts available from 5,000 to 40,000 miles a year, to match your business’s requirements
•No depreciation or disposal risk, the vehicle is simply handed back at the end of the term
•Optional maintenance saves you the cost of services, worn tyres, scheduled and un-scheduled maintenance
•Road fund is included for the full term
•A proportion of the VAT element of the monthly rental can normally be claimed back

Contract Hire may not be suitable if:

•You might need to end the agreement early, as early termination can be expensive
•You cannot predict your annual mileage
•You cannot look after the vehicle and return it in a well maintained condition
•You will not have fully comprehensive insurance
•You are planning to use the vehicle as a taxi, chauffeur or driving instructor vehicle
•You want to own or have the option to buy the vehicle

To discuss leasing in more detail, call Lease Comparison now on 01442 920 920

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