Business Contract Hire & Leasing
When it comes to attaining a new car, some finance packages will work for one group of drivers, whilst others will be attractive to another. Those looking to own their cars in the future will likely go for hire purchase, but car ownership is not a concern for some and such groups and individuals will look to contract hire and leasing.
If you’re someone who wants to avoid the effects of depreciation, as well as getting a new car every three years, contract hire and leasing is the perfect solution. Because of this, it is a very popular choice for businesses when it comes to bring together a capable fleet of new cars.
Contract car hire is widely thought of as a cost-effective and easy to manage method of getting a brand new car. You’ll never actually own the car as a result of going with contract hire cars, but that works as an advantage when it comes to changing vehicle, as you will never feel the hit of depreciation. All you need to do with contract car hire is pay fixed monthly payments for the duration of the contract period and then return the car at the end.
These monthly payments are determined by the retail value of the vehicle, the residual value of the car (the estimated worth of the car at the end of the contract), mileage and the condition of the vehicle. As a result, the higher the residual value of the car, the lower the monthly payments will be, making contract hire a great way of affording more prestigious models than you’d usually be able to afford with hire purchase.
The method of contract hire is perfect for businesses who know their drivers can stick to a certain amount of miles each year and want fixed motoring costs to make it easy to budget for.