Contract Hire and Company Vehicle Leasing for Business
At Driven Leasing, our role is to help you take delivery of your new car or commercial vehicle and to guide you through the whole process so that you select the most suitable car leasing funding product be it contract hire or business leasing.
Business car leasing really is a simple process and our target is to ensure that no issues arise and that the route to vehicle delivery is as efficient as possible.
Many UK companies be they PLC's or SME's (small to medium enterprises) do need to acquire vehicles (cars, light or heavy commercial vehicles) in order to carry on their day to day activities. Often the most daunting task is to collect information and select the most appropriate funding method for their type of business and VAT status.
This process can be incredibly time consuming for business managers and company owners to arrange car leasing directly, and also complicated without specialist knowledge. Driven Leasing employ a number of experienced contract hire consultants, dedicated to sourcing the correct car leasing or finance package for our clients, which will suit their business contract hire needs.
Several acquisition and funding methods are available; leasing, contract hire, contract purchase and finance lease.
Contract Hire
In this section our main focus is the funding of business vehicles via Contract Hire. More and more companies are choosing either contract hire, or contract hire with fleet management; it is estimated that over 60% of business vehicles have been acquired under contract hire agreements. Driven Leasing arranges deals on single, multiple (fleet) cars or commercial vehicles for our clients and we are ideally situated to handle the contract hire needs of your business.
To get full details and prices on the business car leasing deals we can arrange for your company, please select the marque and model of your choice from the menu on the left to view the contract hire deals we currently have on our site.
Further Contract Hire Information
A deposit is payable on the vehicle of three times the monthly contract hire payment. VAT is payable by the contract hirer upon all payments, and up to 50% can be claimed back dependent upon the use of the vehicle.
One monthly payment covers all costs involved in running a company car, bar the car insurance, for which fully comprehensive cover is required: GAP insurance is an option in order to give peace of mind. Vehicle Excise Duty & monthly payments are determined by the following factors:
- cost of car
- agreed annual mileage
- agreed contract length
- optional maintenance & servicing
At the start of the contract hire agreement, the mileage allowance is agreed (you will see that our deals show mileage allowance) for the period of the leasing agreement. Any mileage excess to this agreement is payable at a pre-fixed and agreed rate at the end of the contract. At this point, the contract can be extended or ended, but the hirer has no right of purchase.
With Contract Hire Agreements, the large company asset is also removed from the balance sheet. The contract hire payment is a balance sheet revenue item that is fixed for the duration of the contract: Your balance sheet is freed from the effects of a depreciating asset. If you choose to end the contract hire agreement before the end of the pre set hire period, a settlement figure is calculated taking account of the period left under the terms of the contract.