Get Affordable Business Motoring Through Leasing

By: Martin Preston


Lease Purchase is an affordable option for buying a hire vehicle at the end of a lease period. At the outset of the contract, monthly rental is calculated by considering the cost of the vehicle, the future value at a given date and the miles driven within the contract period. By making one final payment, equivalent to the future value at the contract end, made at that time secures the car to the leaser, who becomes the vehicle owner.

Personal Contract Purchase (also known as PCP) allows an individual to lease a vehicle for a defined length of time, with the convenience of paying a set amount per month. These monthly payments are calculated by determining the agreement length, mileage and the value of the vehicle once the contract has completed. There is an optional balloon payment that can be made at the end of the lease period, if you decide to purchase the vehicle outright, giving you the opportunity to 'test' the car for an extended period of time, to make sure it suits your needs. Alternatively at the end of the lease, the vehicle can be returned to the dealer and a new lease can be taken out on a replacement car. This allows you the flexibility to regularly change the make and model of the vehicle you drive and to hire a replacement with an increased range of specifications, if you wish. This sort of change over is not so easily affordable or accessible for people who buy their car initially, rather than choosing to lease one. As owner-drivers, they will also lose a lot of money due to depreciation if they regularly change new cars.

Motor vehicles are one of life's status symbols. They can affect the way we feel as drivers and the impressions we make on those we pass. They also serve a very functional purpose, getting us from door to door, in comfort, safety and with all our daily supplies too. Almost every business that has any direct dealings with customers and suppliers can benefit from having use of a car or van, but it's always the case that these businesses should buy their vehicles outright. For individual people, the decision of whether to purchase a car in the traditional sense is no longer so easily made. There are now many alternatives to buying that can prove a much better decision, not only saving money, but just as importantly saving time as well. The availability of these options is not restricted to those looking for transport solely for business use, but can also be applicable to people obtaining a car for personal use.

Reducing your Financial Risks

It is essential to manage the risks involved in running a vehicle fleet and by opting for contract hire you are able to do precisely that. Contract Hire enables you to simply pay the monthly fixed rental price and insure and fuel the vehicles. At the end of the lease period, a further lease can be taken out on new, replacement vehicles, reducing the likelihood of any being taken off the road for maintenance as would be ordinarily expected as they age and preventing the need to make good any wear and tear that would be expected with increased age and mileage of a vehicle. This ensures your fleet is always made up of top specification, high performing and excellent condition vehicles.

VAT Benefits

Contract hire has many VAT benefits that can be passed on directly to customers. As contract hire companies are able to claim back the VAT on the purchase price of any new car, once the vehicle is on the road, they can make a claim back of one hundred percent of the VAT on the servicing aspect of the rental price and fifty percent of the finance rental cost. This is a real bonus to businesses, in comparison to vehicles owned directly by the company, which are deemed assets.


Lease and Contract Hire Ltd presents hundreds of contract hire and leasing offers to customers throughout the UK through their search engine based portal website - www.LeaseAndContractHire.com.


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