Tailored monthy planned budget for Car Lease
Business ConsultingFebruary 10, 2012Written by John Matthew440 views
In the UK the contract hire and leasing industry is very healthy. This is a method of acquiring a vehicle without having the weight of raising the funds to purchase it outright. The hire of vehicles is a more free service and can be used by the general public. Often the leasing of vehicles is aimed at business users.
Contract hire is a way in which businesses can finance vehicles; it is the process of hiring a vehicle from a provider for a particular period of time and then paying monthly installments for the vehicle. The company from which the vehicle has been leased retains ownership and is therefore accountable for the associated risks. Once the leasing agreement has expired the vehicle is then returned to the leasing company.
Another benefit of this service is that you do not have to worry about the value of the vehicle decreasing over time, simply run your contract out and swap it for a newer model. It is not uncommon for leasing agreements to include a maintenance agreement and a relief vehicle should the one being leased breaks down.
The most common leases available to businesses last between 12 and 60 months but can be extended if required. The contracts are often tailored to specific business requirements and it is common for there to be a special car leasing offers when multiple cars are leased. Another factor that needs to be taken into account when making a decision, are the various rates available on the particular vehicle you are considering. It is not unusual to see a Contract Hire rate that is a lot less expensive than the same vehicle is available through Personal Contract Hire.
Fixed cost motoring - with Contract Hire the payments are fixed from the outset of the Contract and are not subject to interest rate fluctuations, this enables the customer to budget effectively, if a maintenance package is taken this also ensures you are protected by any costly and unexpected servicing bills.
When a business opts to lease a car, they are essentially renting the vehicle for the long-term, along with a suitable maintenance and repair plan that forms part of the monthly, fixed payment. Businesses that opt to rent a vehicle are therefore able to predict monthly budgets more effectively, due to the fixed costs of such a contract.
Tips you need to follow
1. Shop around through Internet
2. Call other Companies
3. Trust the Service Provider
4. Length of contract should be short
About the Author
Further Reading
Article
Why More Accountants Are Preparing Clients for Increased ATO Scrutiny
Australian accountants expect ongoing tax reforms to lead to increased ATO reviews, audits, and enquiries. Proactive tax planning, accurate record-keeping, and regular guidance from experienced business advisors can help businesses minimise compliance risks and prepare for greater scrutiny.
October 9, 2026
Article
Why Are Gable Boxes Useful for Packaging?
Gable Boxes offer convenient carrying and attractive branding, while Tuck Packaging provides practical opening, customization, protection, and versatile product presentation.
September 16, 2026
Article
The Truth About SaaS vs. Custom Lending Platforms
This article covers SaaS or custom lending solutions on time to market, compliance, and operational efficiency, with key benefits and limitations.
September 5, 2026
Article
Trending Jewelry Styles for 2026: A Complete Guide
August 26, 2026