WHAT IS CONTRACT HIRE?
Also known as car leasing, contract hire is a form of finance agreement whereby the customer hires a vehicle in return for regular monthly payments. This allows you the customer to hire a car or van for a set period and pre-determined mileage at fixed monthly rentals.
Ownership of the vehicle remains with the leasing company, as does all the administration, vehicle tax, insurance, and maintenance.
Contract hire terms typically range from 24-60 months, although short-term car finance can be arranged. At the end of the agreement there is no option to purchase the vehicle and it is returned to the leasing company. Although, some funders may offer the option for the driver to acquire the vehicle at market value.
IS A CONTRACT HIRE AGREEMENT RIGHT FOR YOUR BUSINESS?
Anglo Scottish Asset Finance offers a wide range of business car finance options, our expert team will work with you to find the right fit for your company. Whether you are already familiar with contract hire for cars and van leasing or want to try this for the first time, we are here to help.
Contact us for further support with your requirements. Alternatively, take a look at other asset and commercial finance options that may benefit your business.
Visit our new Contact Hire website: Anglo Scottish Vehicle Solutions to see what we have available.
Need help? Call us on 0191 410 4776
Business contract hire agreements provide your business with known, fixed costs, which helps improve cash flow with just one monthly payment to budget for. For small to medium-sized businesses contract hire can be a great way to free up company capital that might otherwise have been spent on purchasing cars or vans outright.
One of the benefits of contract hire is the added advantage of regular replacement schedules. If you are a VAT-registered business, the benefits of contract hire are even greater, as you can claim back 50% of the VAT paid on the finance element and 100% of the VAT on maintenance.
Adding a vehicle servicing contract to the agreement eliminates the stress and responsibility of vehicle maintenance. Agreements can also include access to courtesy vehicles, ensuring that your workforce is always mobile. These services can be included in the contract or paid for as and when needed.
HOW IT WORKS
Decide on the asset you need to help your business grow
Talk to us, tell us about your business and the asset you wish to acquire.
We will reach out to our panel of lenders on your behalf to gain approval.
Sign your document, once approved we’ll send you your documents to sign. After which we will transfer payment to your asset supplier
We’ll do a final check to make sure everything is running smoothly, and you can start reaping the benefits of your new asset.
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