Products - AVM Contract Hire
Contract hire means agreeing to take control of a car for a fixed period – it’s yours to drive but it is never actually yours to own. Instead you reach an agreement with the leasing company to make fixed payments (usually monthly) for the duration of the contractual period. At the end of the contract you return the car to the contract hire company.
Your contract hire payments will be determined by a number of factors. Firstly, there is the retail price of the car – that is the price you would have to pay if you were to buy it outright. Then, there is the residual value of the car – that is its estimated worth at the end of the contract taking into account depreciation, mileage, and condition. You then pay the difference between the two figures in monthly instalments. So the higher the residual value of the car, the lower your payments will be.
Vehicle leasing with Adept
- Reduced operational risk
- VAT efficient
- Budget-friendly monthly costs
- Sale and Leaseback scheme to free up capital for your business
- Option to include maintenance costs
Vehicle contract hire is the most popular method of funding. It attracts many companies because it offers a wide choice of vehicles and many benefits for a pre-agreed monthly payment over a fixed period.
Your Contract Hire term can run between 36 and 60 months. The benefit to you is that we predict the future residual value and maintenance costs of the vehicle, and set this down in the leasing rate. Should there be any shortfalls, it’s our problem and not yours, meaning your organisation bears less risk.