Contract hire or car leasing has become very popular in recent years but is still widely misunderstood.
To put it simply you are renting a car for a long period, usually 2 or 3 years.
Contract hire is one of a number of forms of leasing agreements. The basic concept is the same as taking an agreement on a car for a short holiday or a van for moving household items.
Contract hire for businesses
We work with clients who run or work for businesses and need a car or van as a work vehicle. Some clients require just one vehicle, for others we provide a fleet of cars or vans, or a mix, depending on their requirements. Businesses find contract hire an attractive option as it allows them to manage cash flow and budget more easily. Having new vehicles can also act as a strong incentive for staff and has a powerful effect on the reputation of a business and vehicles can act as business ambassadors whether parked or en route to customers or suppliers.
Contract hire for individuals
We also work with individuals, many of whom have multiple contract hire cars for various members of the family. Many of our individual clients want a brand new car with the latest safety features and comfort but don’t have or don’t want to use savings to pay up front, with contract hire you change car every 3 years or so depending on contract length, ensuring you’re constantly at the forefront of car technology.
The pros and cons of contract hire
The big advantages:
> There are no worries about depreciation.
> Fixed monthly costs.
> Low initial rental.
> No disposal concerns.
> Brand new car under warranty for the period of hire.
> Latest models with updated safety and technical features.
> May open up a wider choice of models to you.
> Road tax included.
The big disadvantages:
> Expensive if you want to break the contract early.
> The vehicle must be returned in good order (BVRLA standards apply).
> Unexpected (higher than expected) repair costs.
This way of acquiring vehicles is not for everyone and that is the reason we always have a face to face meeting with potential clients to ensure that this would be the correct route for them to take.
We are also able to factor in a variety of considerations such as fuel choice, fuel economy, preferred safety features, vehicle model, seating configuration, storage capacity and a host of others, to ensure the vehicles we supply meet our clients’ needs.
For more information, visit our website: http://morgan-business.com/
Or call us on 07990 592252