Drivelease Business Contract Hire

Key points to Drivelease Business Contract Hire

The most Popular method of funding company fleets, Drivelease Business Contract Hire has many different advantages and disadvantages depending on your company requirements. What may suit one business won’t necessarily suit all. However, the fact that Drivelease Business Contract Hire often demands lower fixed monthly payments will be an advantage to all companies regardless of fleet size.

Some advantages to Drivelease Business Contract Hire

Lower Initial Payment: Unlike other forms of company car finance, typically Drivelease Business Contract Hire requires from as little as three monthly payments upfront.

 

Fixed Monthly Costs: For an agreed monthly rental, your business benefits from the use of a vehicle for the duration and mileage that suits your company requirements. The amount 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, the finance company can take care of maintenance, servicing, tyres and a replacement vehicle should yours be off the road. All of this will give you a complete peace of mind knowing that all your company motoring requirements are covered.

Other benefits to Drivelease Business Contract Hire

Free Up Capital: Drivelease Business Contract Hire is an efficient way of running a fleet of vehicles. Rather than tying capital up in depreciating assets the company is able to invest in other areas of the business. Contract hire agreements are not shown on the 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 companies respond to changes in their Corporate Social Responsibility (CSR) guidelines, for example switching fleet vehicles to greener, more fuel efficient models such as hybrid technology.

 

Tax Advantages: Some or all of the rental charge can be offset against taxable profits.

 

Leasing Company Power: The major leasing companies purchase thousands of vehicles each year; and as such negotiate substantial discounts with luxury, prestige and performance vehicle manufacturers and dealer groups. These savings are then passed on to you in the form of a competitive business contract hire rate.

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