What are the benefits of Business Contract Hire?

If you’re looking to build an impressive fleet of corporate cars, Business Contract Hire is the perfect solution. There are plenty of benefits for you and your business when it comes to this kind of lease.

The initial cost

In short, the cost is much lower. Business Contract Hire means you’re paying a fixed monthly payment with a minimal initial outlay. This means you can take advantage of new vehicles for your business without having to spend large amounts of cash from the get-go. That leaves you with more money to invest in other areas of your business. This, combined with the other financial benefits of leasing, makes it an incredibly cost-effective solution for businesses of all shapes and sizes.

Payment amounts remain consistent

There is no fluctuation with the monthly payment amounts for your contract. Your payments remain fixed, so you can plan your expenditure without having to worry about unexpected surprises.

No depreciation to worry about

If you were to buy the vehicles for your business, you could end up losing up to 60% of the value of those vehicles within the first three years of owning them. That’s quite a considerable amount of money to lose when it comes to selling them on later down the line.

With Business Contract Hire, you don’t need to worry about that. The depreciation of the vehicles you lease is taken on by the lease company and any further depreciation won’t affect your lease contract. You can simply return your vehicle at the end and even create a new contract on your next vehicle. There’s no hassle and no disappointment.

Reclaim your VAT

Reclaiming VAT is yet another financial benefit to leasing your company vehicles. If your business is VAT registered, you can reclaim the VAT from your lease. If the vehicle is used for both business and personal situations, you can claim back up to 50% of the VAT. However, if the vehicle is used solely for business purposes, you could claim back 100%.

Your vehicles are well-maintained

There’s nothing worse than a car breaking down and having to spend a small fortune to get it back on the road again. Business Contract Hire takes that stress away. Vehicle maintenance is included in the lease, further keeping potential costs down whilst keeping you and the rest of your business safe.

If you’d like to find out more about Business Contract Hire or have any further questions, give us a call on 0800 311 8290.

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