About Our Business Contract Hire and Lease Deals
Business Contract Hire is a particularly popular form of long-term car leasing which specifically deals with sole traders, partnerships and limited companies. This form of leasing is particularly popular with VAT registered companies, as it allows them to claim back 50% of the VAT for simple supplying the vehicle.
How Do These Agreements Work?
Commonly referred to as vehicle lease a business contract hire allows businesses to make fixed monthly payments for the use of a vehicle for a term of normally between 12-48 months. Taking out a contract hire car means your company can concentrate on its main priorities, and not have to worry about the financial and administrative risks that you may face with owning your own vehicle or fleet.
The Benefits of Business Car Leasing
Here at Britannia, we want to make sure that all of our clients have all of the information that they need when making a big decision. This is why below we have listed a number of pros and a selection of cons that you should consider when looking for a business contract hire.
- You Don't Own It - The lending provider remains the owner of the vehicle the entire time meaning it appears 'off the balance sheet' of your company.
- Fixed Monthly Payments - Fixed monthly payments cover the rental of the vehicle and any optional maintenance options.
- Flexible Terms - We offer a number of flexible term options ensuring we are able to meet the needs of your company and your staff.
- Early Termination is expensive - If for any reason you have to cancel your business contract hire early then you will be faced with some rather high cancelation fee's.
- You never own the vehicle - You will never own the vehicle and like with some contracts you will never be able to purchase the car.
- Excessive Mileage Charges - If you exceed your agreed yearly millage then you will be charged an additional fee which will be calculated based on a 'pence per mile' basis.
The benefits are fixed monthly payments with no disposal risk however, reasonable care has to be taken of the vehicle. As well as this there is an obligation to remain under your stated mileage at the contract inception or the finance company will apply an additional charge for loss of value.
Give us a call to see how we can help you out today, call 0161 440 7272 today!