Benefits of Contract Hire

13 Compelling reasons to use Contract Hire

• Release Capital - If you are currently purchasing your vehicles through your own funding, you are inadvertently tying up a valuable proportion of your company’s financial resources. Contract Hire releases these funds for more profitable use.
• Accurate Budgeting - With Contract Hire, all costs are calculated by experts and built into a fixed monthly payment. Vehicle costs can be forecast accurately for up to five years. Paperwork is almost eliminated and budgets tightly controlled.
• Tackles Depreciation - Owing to our buying power, we can purchase vehicles at cheaper rates. Efficient vehicle disposal always enables our Finance Houses to accurately assess resale values. Only the minimum depreciation is passed on to our customers, resulting in realistic rentals.
• Improves Cash Flow - Contract Hire will improve your company's cash flow through low initial outlay.
• Freedom of Choice - We can supply all makes of cars and vans at competitive Contract Hire rates. You choose the model, colour, specification and accessories to suit you. We then offer expert and unbiased advice on all makes and models that might meet your needs and budget.
• Off Balance Sheet Funding - Contract Hire is classed as an operating lease, which means that the vehicles do not show as depreciating items on your balance sheet. Rentals are classed as a revenue expense and are shown in the profit and loss account.
• Reduces Administration - Are your management and staff currently weighed down with time consuming vehicle administration? Contract Hire releases them from this burden, so they can achieve more profitable objectives. Contract Hire significantly reduces paperwork. Road fund licence supplied and renewed automatically.
• Enhances Company Image - With Contract Hire you will always have modern and presentable vehicles. Contract Hire will also give you a disciplined replacement program. Remember, your competitors may already be enjoying these benefits!
• VAT Benefits - Contract Hire has many VAT benefits. Our Finance Houses can reclaim the VAT on the purchase price of the vehicle and pass on these benefits to our customers. Also, once the vehicle is on the road, you can claim back 50% of the VAT on the finance element (if the vehicle is available for personal use or 100% if only available for business use) and 100% of the VAT on the maintenance element of the rental payments.
• Mileage & Maintenance Reviews - Ash Vehicle Contracts provide annual mileage reviews as part of our service to you. This enables us to identify if any of your vehicles are over or under contract mileage. We can then advise you whether it is possible to recontract mileages prior to the end of the contract. This minimises any excess mileage charges.
• Special Benefits for Larger Fleets - For clients that have more than 10 vehicles we will negotiate on your behalf with our funders to set up a Pooled Mileage Agreement. This means Contract Hire terminations that are over contract mileage can be offset against contracts terminating under contract mileage. In certain circumstances we are also able to negotiate Pooled Maintenance Contracts and Pooled Residual Values.
• Peace of Mind - With monthly payments fixed over the entire contract period and a range of optional extras, Contract Hire takes away the worry and trouble of managing your company cars and vans.
• A Selection of Cost Options
  • Breakdown recovery service, including home start and relay
  • Replacement vehicle for mechanical/accident breakdowns
  • Routine maintenance and unscheduled mechanical repairs including replacement tyres, batteries and exhausts