What is Contract Hire?
Contract Hire is a long-term rental agreement that offers the exclusive use of a car or van for an agreed period of time at a fixed monthly cost.
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.
Also known as Leasing, this option helps you avoid any unexpected costs by also offering a maintenance option for the term of your contract.
You also don’t have to worry about the depreciation of the vehicle or the job of selling it at the end of the contract as this becomes the responsibility of Woodfield Facilities.
How it works:
As a customer you will pay an initial rental at the start of the contract, usually equivalent to 3, 6 or 9 payments. You would then make regular monthly payments for the duration of the contract term, typically 2, 3 or 4 years.
The initial rental cost, in short 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.
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. You would then simply hand the car back at the end of the contract without any further obligations.
Business Contract Hire is a popular choice for sole traders, partnerships, and limited companies. It is a particularly popular option for VAT registered companies as they can claim back 50% of the VAT for the supply of the car. However, if the vehicle is used solely for business purposes, you could claim back 100%.
Personal Contract Hire
Also referred to as PCH, is becoming a popular alternative to purchasing a brand-new vehicle.
You pay to lease the vehicle throughout your contract with a regular monthly payment, and then return the vehicle to Woodfield Facilities at the end. You can also opt for the fully maintained contract to ensure the cost of servicing and maintenance is also covered.
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, choosing a maintained contract takes that stress away. Vehicle maintenance can be included in the lease, further keeping potential costs down whilst keeping you or your business moving. Maintained contracts are available for both Business and Personal Contract Hire.
As with all Contract Hire products you never own the vehicle, it remains the property of Woodfield Facilities, however, this means that you never need to worry about the vehicles depreciating value, or selling the vehicle once you have finished with it.
Returned vehicles should be in a condition commensurate with age and mileage, a fair wear and tear guide is available upon request and will be sent to you prior to returning your vehicle.
Both Business Contract Hire and Personal Contract Hire are subject to VAT and therefore may change in line with current VAT rates.