Contract Hire has historically been a proven method of car finance for the business user, providing motor finance for both for new start companies and for established businesses. New start companies typically may have no credit history but this need not exclude them from taking out contract hire agreements for their motor finance needs.
Contract hire agreements provide a car over a fixed term. A fixed monthly amount is payable over the period of the contract hire and when the contract hire agreement ends you have the option of handing the car back or starting another contract hire agreement on another car. This type of car finance is just one of the options available to the business user - both the new start company and established businesses. The business motor finance team here at yourcarchoice.com are experts in the field of car finance for business clients - both established companies and new start businesses.
Contract hire agreements are easy to budget for: there is a minimal outlay and a regular fixed monthly payment. Contract hire agreements are tailored to the business user's requirements, and is a form of car leasing available to new start businesses as well as those who have been trading for some time, and costs are calculated on the contract hire agreement's duration and the projected annual contract hire mileage. Also there are no disposal or depreciation issues to deal with, leaving only the "consumables" such as insurance and fuel as additional costs. We can also factor in the maintenance element on a contract hire agreement which means that budgeting for your monthly or annual motor finance costs will be clear and easy to understand on a contract hire agreement.
In common with other motor vehicle funding schemes (Personal Contract Hire and Personal Contract Purchase, for example) there are penalty fees payable if the car has covered more than the agreed mileage, or if there is any damage to the car at the end of the contract hire agreement. However, building in the maintenance costs into the contract hire agreement, as mentioned above, will give you the assurance that your maintenance costs will be covered for the life of the contract hire agreement. Contract hire agreements also include the costs of the road fund licence for the entire duration of the contract; this payment is included in the monthly rentals and again makes the business user's car finance costs on contract hire clear, simple and affordable.