What is Contract Hire?

 

Contract Hire offers you and your business a fixed monthly cost alternative method of motoring.

This is a mileage-based contract where you must ensure that the vehicle is maintained (As per the manufacturers recommendations) and the vehicles condition kept to the highest standard for the period of the hire. 

For some business users, Contract Hire is one of the most popular types of vehicle leasing. 

That said, In the case of business activities that are likely to cause extensive damages that devalue the vehicle way – that may not be the case. 

This type of agreement offers a hire period from 2 to 5 Years based on your anticipated mileage request. 

Additional maintenance (or Fully Maintained) contracts are available and can be included within your agreement. (At an additional cost)

This Fully Maintained option can include all vehicle maintenance, service and even tyres for the duration of the contract.

Vehicle Road Tax is also included for the duration of the hire.

Benefits of Contract Hire:

  • Minimal Capital Expenditure
  • Low initial outlay (Initial Rental) especially if not VAT registered - compared to other funding methods.
  • Fixed Monthly Rental Costs – Great for forecasting cash flow for your business
  • Contract Periods from 24 months (2 Years) up to 60 months (5 Years)
  • The additional option to add ‘Maintenance’ to encompass a true fixed running cost of your vehicle
  • Initial Rental & Monthly Rentals or a proportion of the Rentals can be offset against the business profits
  • No need for you or your business to be VAT Registered, However If your business is VAT Registered you can claim up to 100% of the VAT on the rental payments and maintenance payments on your commercial vehicle.
  • No risk of vehicle depreciation – The finance company collects and arranges the disposal of the vehicle at the end of the agreement.
  • Ongoing advise and customer support during the agreement
  • Optional maintenance package available (Some inclusive of vehicle tyres)
  • Optional breakdown rescue cover and replacement vehicle cover available

Concerns of Contract Hire:

  • Extra care needs to be taken when estimating the term of the contract and the anticipated mileage (Excess mileage over the agreed contracted mileage will be chargeable - per mile +VAT) *This will be identified on the quotations and finance documentation
  • You are unable to own or purchase the vehicle
  • The charges and costs for early termination can be costly
  • Damage to the vehicle or failure to maintain the vehicle will result in additional charges at the end of the contract by the finance company.
  • ‘Fair Wear & Tear’ for the vehicle is accepted (As per the ‘Fair Wear & Tear Guide’)

 

Running Costs:  The running costs for the vehicle are your responsibility, Please take this into consideration when looking at Non Maintained Contract Hire. Maintenance, Servicing and ‘Wear & Tear’ of the vehicle is your responsibility.

Vehicle finance for businesses is a complex area and recommending the correct funding solution will depend on many factors including:

  •  Business Status
  •  Cash Flow
  •  Other Borrowings
  •  Vehicle Usage
  •  Suitability and Affordability

To ensure you get the very best advice, you should seek professional guidance from your accountant or a Business Finance Specialist.

Any agreement for vehicle funding will be completed without advice and based on your explicit instructions.

New Vehicle Solutions Ltd is authorised and regulated by the Financial Conduct Authority, our firm reference number for consumer credit is 685872 New Vehicle Solutions Ltd is an Appointed Representative of AutoProtect (MBI) Limited which is authorised and regulated by the Financial Conduct Authority for Insurance Mediation, their reference number is 312143. We are a credit broker and not a lender.

You can check this on the FCA Register by visiting the www.fca.org.uk or by contacting the FCA direct on 0300 500 8082

Company Registration Number: 8572112 – VAT Number: 166595858 Registered Office: Suite D Chapel Barns Merthyr Mawr Bridgend CF320LS

New Vehicle Solutions Limited does not and will not charge any fees for providing any Consumer Credit services. 

New Vehicle Solutions Limited  can introduce you to a number of finance providers, we may receive a remuneration if you enter into an agreement with them.

Calls may be recorded for training and monitoring purposes.

Last Updated: 04/08/2017



Drop us an email:



All offers are subject to change at any time, you must be 18 or over and finance is subject to status, vehicle availability and terms and conditions apply. We can introduce you to a limited number of finance companies, a commission may be received. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication.

All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.

Finance provider documentation fees may also apply

Alternative agreement types terms, mileages and deposit quotations are available on request.

Why New Vehicle Solutions?

FREE Mainland UK Delivery

Friendly No-Pressure Staff

Wide Range of Finance Options

Manufacturer Warranties as Standard

All Makes & Models Available

Cars & Commercials

**We Take Part Exchange** 


Offer available for Commercial Vehicles Sold/Lease/Purchased

from the 20th November 2017 to the 29th December 2017.

*Terms & Conditions Apply - Quote Reference: 'NVS TOOL OFFER' Call Now!











A-Plan Car Insurance