Contract Hire

Business Contract Hire is our most popular type of vehicle finance and is a good choice if you want to avoid the risk and hassle of buying, servicing and disposing of fleet vehicles. 

How does it work?

Subject to terms and conditions, you hire a vehicle from the leasing company (Staffcars find the cheapest provider on your behalf) for a set period and pay a fixed monthly rental.  At the end of the contract you simply return the vehicle to the leasing company (or rather they will pick it up).  You enjoy all the benfits of using the vehicle and the leasing company retains all the risks of owning it. 

Benefits

1) Easier budgeting.  Vehicle rental costs are a known entity from the outset.  You can also include all maintenance costs and breakdown recovery in the rental, leaving you just the fuel and insurance budgets to set.

2) Smoother cashflow.  The cost of vehicle acquisition is spread monthly over the length of the contract.  There is only a small initial payment, typically equivalent to three months rental and no final balloon payment. 

3) Less administration.  Between Staffcars and the supplying Leasing Company, we handle all the administration of supplying, servicing and disposing of vehicles, which frees up resources for your core business.

4) Flexible contract.  The length of contracts can be tailored to your needs and budget from the outset.  They can also be adjusted during a contract, if you want, to reflect the changing nature of your business.

5) Reduced financial risk.  You don't have to worry about residual values, interest rates and, if it suits you, maintenance costs and relief vehicles.  They are not your responsibility! 

6) Off balance sheet funding.  Contract hire vehicles do not appear on your company's balance sheet.  This can improve your borrowing potential, which can then be invested more effectively in your core business.

7) VAT advantages.  Leasing companies reclaim VAT on every vehicle that they buy and so that saving is passed on to you in the form of lower rentals.  Once the vehicle is on the road you can claim back 100% of the VAT on the servicing element of your rental and 50% of the VAT on the finance aspect (100% if the vehicle is only available for business use).

Staffcars have access to vehicles from all leasing companies and can also get vehicles direct from manufacturers.  We have excellent buying power which in turn means lower fleet costs for you.  If you choose one leasing company for your full fleet they may be competitve on some models but not on others.  By using Staffcars we source the vehicles from wherever it is cheapest but you still deal with just one company.  We have the resources to respond to your needs on a daily basis as your business evolves.