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.
Business contract hire that's right for you.
Vehicle contract hire is the most popular method of funding.
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.
What are the main benefits of Business Contract Hire?
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.