Buying a new car, even a used one, is very expensive. Buying several cars at once will obviously be even more costly. It is unlikely that an individual would be buying more than one at a time, but for businesses, the likelihood is very high. The business, by its very nature might rely on commercial vans and cars for the everyday smooth-running of the company; for example, you might run a delivery or taxi service. Or you may need cars to provide to your employees as part of their overall benefits package.

For whatever purpose you need commercial vans or cars, there is a cheaper alternative to buying new or used vehicles. Contract hire is the simple solution to vehicle funding. If you buy new or used cars, you not only have to pay a huge sum of money for the actual purchase, there are the insurance, fuel, road tax and maintenance costs to factor in, too. With a used car, depending on its age, you may find you have to spend quite a lot more on maintenance.

Choosing the contract hire option means that the only things you have to worry about are paying for the petrol or diesel and the insurance; road tax and roadside assistance are usually included in the monthly rental. Maintenance and servicing can usually be included in your contract hire package, too.

How does contract hire work?

The monthly rental charged is calculated based upon the cost of the vehicle, the contract period and the anticipated resale value. It is also takes into consideration the predicted mileage, service and maintenance costs, together with any additional services such as relief vehicles.

Businesses can choose optional extras such as maintenance, breakdown cover, GAP (Guaranteed Asset Protection) Insurance and Accident Management, tailored to suit your specific needs and therefore reduce your administrative time for more important matters. This allows easy budgeting for forward business planning with fixed hire costs.

If you want a flexible and cheaper alternative to buying a new or used car, then you should seriously consider contract hire. It can not only save your company money, allowing you to release capital to spend on other parts of the business, it can also save you the hassle and time of having to source and dispose of new cars.

UKVF is a privately owned vehicle finance and vehicle sourcing company and we have over 15 years’ experience in the industry. Give us a call today on 01257 267 036 for advice or a free contract hire quote.