Car Leasing and Contract Hire - Funding Options
Car Leasing and Contract Hire
Not only does Auto Owl offer great Contract Hire and Car Leasing Deals, but we also offer a variety of car leasing finance and funding options to suit you and your business. Our funding options cater for car leasing & contract hire for all types business users. We also specialise in Audi Lease and can offer you advice on Audi Finance as well as other brands.
Please contact us today to find out about our Car Leasing Deals and a variety of funding option we have available for your car lease. Car Leasing from Auto Owl is more affordable than you think!
Finance Car Leasing Deals
For business customers buying or contract leasing new fleet vehicles can prove costly. To ease the burden on this there are a number of ways you can spread the cost over time with regular monthly payments but what are the car leasing contract options that are available to customers.
This allows companies to concentrate on business without the necessity for administration costs and heavy financial commitment. They allow for fix rentals, flexible terms regarding length and mileage usage, while covering the vehicles maintenance. Contract hire also negates the effects of depreciation of your assets.
More on Contract Hire & Benefits of Contract Hire
An option that enables companies to buy their fleet vehicles without the added complication of asset depreciation. It has the same benefits of flexible payments and also maintenance service. Guaranteed resale value with the finance company and ownership of the vehicle passes on to the customer at the end of the contract.
For those looking for tax efficient methods then finance leasing is probably the best option. You pay an agreed amount over a fixed period, based either on the entire cost including interest or with lower rates and a one off final payment.
Agreements regarding duration and mileage are agreed and you also benefit from low administration and maintenance cost.
Lease purchase gives the customer an opportunity to purchase a new or used vehicle with assistance but does not include any of the other benefits such as maintenance. The customer agrees to outright purchase and there is no option of exchange at the end of the contract.
When it comes to car leasing, there are a number of finance options available for your business car lease. Contract hire has become the first choice for businesses to finance their car leasing deals.
Contract Hire is for companies who want to avoid the financial risk and administrative burden of owning their vehicle fleet, and prefer to concentrate on their core business activities instead.
Contract hire - main benefits:
- Fixed monthly costs
Contract hire provides the use of a vehicle at a fixed monthly cost. The fee takes into account the vehicle's price when hired, its forecast mileage during the contract and its estimated residual value at the end. As long as you have not exceeded the mileage and the vehicle is in a fair condition, you just return it at the end of the contract, with no further cost.
- No Risk
Most vehicles will lose value from the moment they leave the showroom. In a contract hire deal, you simply return it to the car leasing company at the end of the contract period, and they take the residual value risk.
- Flexible terms
Car leasing companies offer flexible terms on your contract hire to meet your requirements with variable duration and mileage terms. You can also include options for full servicing/maintenance costs, tyres and road fund renewal in your contract hire rates.
- Lower cost
car leasing companies buy thousands of vehicles each year so they can negotiate great deals with manufacturers and pass the savings on to you in the form of a very competitive car leasing deal/rates.
- Free up capital
Leasing a car instead of purchasing it means you are not tying up capital in a rapidly depreciating asset. As you are not paying upfront, you can invest money in growing your business or reducing debts.
- No Maintenance costs
If you include things like maintenance and servicing in your contract hire agreement; you will also be protected from any unseen rise in these costs. Additionally the full vat on the service /maintenance element (if taken) may be recoverable in full.
- Claiming VAT back
VAT is 100% reclaimable on the cost of a vehicle when it is solely used for business, regardless of whether you buy it or contract hire it. Current UK tax legislation also helps to keep contract hire costs lower. Businesses may also be able to reclaim up to 50% of the vat payable on the monthly rentals if for registered business users with a proportion of private vehicle usage.
- Off balance sheet funding
Car leases do not have to be shown on a balance sheet, which will improve a company's liquidity ratio, gearing and return on assets.
The level of the monthly payment of your contract hire is calculated according to the followings:
- The value of the vehicle
- The initial rental
- The length of the rental period
- The agreed annual mileage
- The exact package to suit your needs
After the agreed period you return the vehicle and there is nothing more to pay as long as all payments are met and all terms and conditions of the contract have been met.
Check out our car leasing deals to see how much you can save on car leasing for your business and personal use.