Car Leasing News

- Contract Hire provides certainty when there is uncertainty.

-  Fixed cost motoring for the vehicle you want.

Compare Contract Hire.com advises small businesses and consumers to consider Contract Hire when financing their next vehicle. There are 5 reasons as follows;

1) Cars lose money over time so why invest your hard earned cash in an asset that will always reduce in value? Second hand prices are plummeting so avoid the risk of vehicle ownership by contract hiring.

2) Contract Hire is a fixed cost motoring scheme, allowing a small business or a consumer to budget their cash flow more effectively i.e. like fixing your mortgage rate. One monthly payment can cover most costs including finance, maintenance and Vehicle Excise duty. All you do is insure and fuel the vehicle.

3) The Contract Hire Finance companies recover VAT at the current rate when they purchase a car so the vehicle is effectively being bought at less cost. This reduction, in the amount of capital to finance, is passed onto the customer in the form of a lower rental to pay. (N.B there is some restriction on recovering the VAT that is added to the monthly finance rental, for personal users 100% of the VAT is non recoverable and for VAT registered businesses 50% of the finance element is non recoverable).

4) A more expensive car may actually have a lower monthly contract hire rental than a cheaper costing vehicle, due to the future forecasted re-sale value that the finance house predicts. Therefore you can drive a better car than you think you can afford, by searching by the monthly rental, rather than the vehicle cost.

5) The FSB (Federation of Small Businesses) has recently advised small to medium sized companies to shop around the market to manage their costs. This good advice can be applied to vehicle financing as well and getting four or five quotes from various contract hire companies is advised before ordering your next vehicle as prices will vary considerably.

Try the Budget Quote £ Shopper and here you will see Audi, BMW, Volkswagen and Mercedes cars at very competitive prices as they have strong residual values.

www.comparecontracthire.com aims to inform smaller companies and consumers about how contract hire works and its financial and administrative benefits. The site also offers guidance and has useful links to other areas associated with running a vehicle including, fuel costs, green and CO2 issues, daily rental, accident management, company vehicle policy and Duty of Care. It also provides access to contract hire quotes from twelve major contract hire finance companies at one source.