Our dedicated Business Solutions team is available to help you choose the right fleet solution for your company.
Whether you're looking for a company car or an entire fleet of vehicles, we have an option to suit you. From advice on finance options to after sales care we will be with you every step of the way to ensure that you get the best package to suit your requirements.
About Contract Hire
As the most cost-effective and easily manageable form of car leasing, Business Contract Hire is one of the most widespread. In fact, it is the most popular way of hiring a business vehicle, with over half of all new company cars registered and funded in this way.Popular with various types of fleets as well as individuals, Business Contract Hire bears many different pros and cons tailored to business requirements and what may suit one business won't necessarily suit all. However, the fact that Business Contract Hire often demands lower fixed monthly payments will most likely suit all.
There are many advantages to business contract hire, these include:
Low Initial Payment: Unlike other forms of finance, typically business contract hire requires three monthly payments upfront.
Fixed Monthly Costs: For a set monthly payment, your business gets the use of a vehicle for an agreed duration and mileage that suits your needs. How much you pay each month will be determined by a number of factors, including the type of vehicle, the purchase price of the vehicle, mileage, and the estimated value of the car at the end of the contract (known as Residual Value). Therefore, the higher the residual value of the vehicle, the lower the business contract hire monthly payments.
Hassle free: For an additional monthly fee, we can take care of nearly every hassle associated with vehicle ownership, whether it is maintenance, servicing or replacement vehicles.
Free Up Capital: Business contract hire is an efficient way of running a fleet of vehicles. Rather than tying capital up in depreciating vehicles the company is able to invest in other areas of the business. Vehicle leases do not have to be shown on a balance sheet, which will improve a company's liquidity ratio, gearing and return on assets.
Flexibility: Running a fleet using business contract hire gives the company flexibility to respond to changing market conditions. Business contract hire agreements are typically between 12 and 48 months long, which allows the fleet to respond to changes to staffing requirements more efficiently than through alternative funding methods. This flexibility can also help business' respond to changes in their Corporate Social Responsibility (CSR) guidelines, for example switching fleet vehicles to greener, more fuel efficient models.
Tax Advantages: Some or all of the rental charge can be offset against taxable profits.
To find out more about how Lookers Volvo can help your corporate fleet, contact our dedicated Corporate team today. Alternatively, visit your local Taggarts Volvo showroom.