Vehicle Contract Hire

Vehicle contract hire is a popular method of vehicle leasing that has been gaining popularity in recent years. For businesses, it`s an attractive alternative to purchasing a vehicle outright, as it allows them to have access to a vehicle without having to bear the burden of vehicle ownership.

Vehicle contract hire is also referred to as car leasing, and it involves renting a vehicle from a leasing company for a fixed period of time. Unlike traditional vehicle purchasing, contract hire is flexible and allows businesses to select the specific model and make of vehicle that best suits their needs.

Some of the main benefits of vehicle contract hire include:

1. Lower Upfront Costs

One of the main advantages of vehicle contract hire is lower upfront costs. With a contract hire agreement, businesses will typically pay an initial deposit followed by affordable monthly payments throughout the lease term.

2. Flexibility

Another key advantage of vehicle contract hire is the flexibility it provides. Businesses can choose the specific make and model of vehicle that suits their needs, and they can also choose the length of the lease term, which can range from 12 months to several years.

3. Maintenance and Servicing Included

Most vehicle contract hire agreements include maintenance and servicing, which can save businesses money and provide peace of mind. Maintenance and servicing can include regular oil changes, tire rotations, and other necessary repairs.

4. Tax Benefits

Vehicle contract hire can also offer tax benefits for businesses. The monthly payments made towards the lease can be claimed as a business expense, which can help reduce the overall tax bill.

Overall, vehicle contract hire is a flexible and cost-effective solution for businesses that need access to a vehicle without the burden of ownership. With lower upfront costs, flexible lease terms, and maintenance and servicing included, it`s an attractive option for businesses of all sizes.