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Business Contract Hire Leicester
Business Contract Hire in Leicester has never been easier. There are lots of different ways for your business to buy a new or used car for your business and at Ready2Lease business contract hire (BCH) is one of these.
So what is business contract hire?
A Business Contract Hire agreement is a long term arrangement which allows a business to lease a car. The usual time span for a Business Contract Hire agreement is anywhere between 24 to 60 months i.e. 2 to 5 years). After the contract is finished, the car just needs to be returned to us.
Business Contract Hire agreements are all calculated with a fixed monthly rental cost that is static over an agreed period of time, as well as an annual mileage limit. We try to be as accommodating as possible, which is why we allow you to customise both the agreement duration and mileage.
How does business contract hire work?
First, you need to decide how much you want to pay each month. You also need to calculate how how many miles you’re likely to do each year. Once you have that information you can then search for cars that fit with those 2 basic criteria.
Most deals will also then require you to put down a deposit (usually the equivalent of eight to 10 monthly instalments eg: if the monthly instalment you'll be paying is £100pm your deposit will be between £800 - £1000).
What happens at the end of a business contract hire deal?
At the end of the deal, you simply hand back the car. If you have done more mileage than you anticipated when entering the deal, you’ll be charged for any excess miles.
You'll also be charged for any damage to the car, so it’s worth paying for repairs that need to be done and to have the car thoroughly cleaned inside and out before returning the keys.
What are the main benefits of Business Contract Hire?
Something that attracts a lot of people to take out a Business Contract Hire agreement is the low initial rental. Compared to how much you could pay for buying a car, the difference is quite considerable.
When working within a business, costings related to vehicles can often be a concern. When you choose a Business Contract Hire agreement, you'll have fixed costs which include:
- the leasing service (i.e. the vehicle itself)
- road tax.
Being able to plan how much you use a vehicle is crucial within a business, and fixed costings makes it so much simpler and budgetable. Any costings can be worked out well in advance before you start using the car, so you will always be prepared.
When you begin a Business Contract Hire agreement with Ready2Lease, you agree on a predicted level of depreciation. Any other depreciation that may occur will not compromise your contract. By not owning the vehicle, you do not have to worry about selling it on after your contract has ended. You simply return it and pick up your next new car (if desired).
When using and running a vehicle in your business, it's important that you have correct paper work. We are able to handle all documentation that comes with a car; including tax discs, number plates, and MOT certificates. If you have any queries about any of these pieces of documentation then you can simply contact us and we can send a copy.
Many businesses don't realise that if you lease a vehicle exclusively for commercial use, you are able to claim back 100% of the VAT. Furthermore, even if the car is used as a private vehicle, you are still able to reclaim at least 50% of the VAT.
Ready2Lease pride ourselves on offering some of the best deals for business contract hire in Leicester. Please browse through our site to check out some of our special offers. We look forward to being of service to you soon soon.
Are there any disadvantages to Business contract hire?
As with everything in life, there are always pros and cons. Below are some of the things to consider when entering into a business contract hire agreement:
Mileage is a key part of any car lease for businesses. It is important that you estimate your annual mileage as closely as possible and accurately reflect that in your lease agreement. Penalties for excess mileage average around 10p per mile but can increase considerably if the vehicle is of executive class. An extra ten thousand miles on the clock - which, while somewhat extreme, does happen - is likely to put £1,000 or more onto the final bill. So estimate properly from the getgo and you can avoid this unwanted and unexpected extra cost at the end.
Excess wear and tear
Fair wear and tear is understandable – no leasing company expects the vehicle to come back as perfect as it left – but taking this to excess is going to be costly. If you are providing vehicles to your staff, it is important that you remain vigilant regarding their maintenance of the car or van. A good rule of thumb is for people to treat the car in the same way they would had they bought it themselves!
Minimising physical damage both internally and externally is obvious, but one of the often-overlooked problems is that of smell. Smoking and eating are huge culprits when it comes to ruining the cabin atmosphere and should be discouraged or banned in all vehicles that form your business lease.
Maintenance and servicing
Remember to always get your fleet serviced by an authorised dealership to remain in the terms of your business contract. Use of unknown or unauthorised garages can incur fees when the vehicle is returned.
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