Why Choose Contract Hire Over Owning Your Commercial Vehicle?
What do we mean by contract hire?
Basically, it is another way of saying long term leasing. Or in other words, a type of asset finance. It means your business can outsource its fleet hire solutions and make use of a range of vehicles without actually having to purchase them outright. This can have huge benefits to your business in terms of cash flow, flexibility and minimising administration.
Of course, we understand that every business is different, and every business owner will have different ways of running their books, but when it comes to company vehicles and fleet management, we think contract hire is a modern minded and financially beneficial approach.
So why could contract hire be a better fit for YOUR business?:
- Minimal upfront costs
Pay less for your vehicle solutions upfront. When buying a vehicle, even if it’s second hand, you will need to outlay a large amount of money all in one go. Contract Hire means you will spread the costs over monthly installments and pay less at the beginning, in conjunction with the type of vehicle you are leasing.
- All maintenance and servicing covered
If you were to purchase your fleet vehicles, the liability & cost lies with you, the owner. Aside from the responsibility, the logistics and admin side of things might cause you a headache that you just don’t need. The beauty of contract hire is that all of that lies with us. You needn’t worry about it, we will remind you, get you booked in, and the monthly installments will cover the cost of any servicing or maintenance needed. We do all our servicing onsite, so no waiting around for a third party to get themselves into gear.
- Tax included
That’s right, tax is also covered in the monthly payments. Another admin job out of your hair so you can get to using your hired vehicle as soon as possible.
- Tyres & mileage
We can’t speak for all providers, but at Trott Rentals, you can be sure that all tyres and mileage is included in your contract.
- You don’t pay depreciation
When you own a vehicle you are always going to be lumbered with the depreciation cost, that’s just how it is. It might not be so bad if you only have one, but imagine paying the depreciation across a whole fleet of vehicles. The moneycalculator.com estimates that if you buy a VW caddy van from new, it will depreciate a whopping 51% in the first 3 years, regardless of its condition. Depreciation is something that a lot of people don’t consider until they come to sell up and realise their quote is rather disparaging.
- We will provide a replacement van at no extra cost
If your vehicle is in for service/maintenance reasons, we will replace it for you, free of charge, until your vehicle is ready. We always have a contingency plan in place for you so there is no need to worry about not being able to get around.
- Flexibility
At the end of your 3 year term, or however long your provider has agreed with you, you can usually trade in your vehicle for a new version, or upgrade/alter your contract. This is a great benefit especially if your business is growing. At Trott Rentals we respect that every business will have their individual needs, and we are happy to cater to that. If your business changes at all, or branches out into other markets, you may well need different sorts of vehicles that you’d never previously considered. We’re happy to cater to that too with a huge range of vehicles available.
- Reclaim your VAT
If your business is VAT registered, you can reclaim the VAT from your lease vehicle. Yet another financial benefit to leasing your fleet. When a vehicle is used for the sole purpose of your business, you could claim up to 100% back. It’s worth looking into.
Owning vehicles will never go out of style, but more and more businesses that require transportation have recognised the benefits of leasing their vehicles and outsourcing their fleet management. At Trott Rentals we have been supporting businesses of all kinds to keep their wheels rolling and we look forward to helping many more.
From small vans to 44 ton tractor units, we can help. Give us a call on 01603 426487 or fill out our enquiry form on our contract hire page.
