The most popular option for the business user, contract hire offers fixed and inflation proof vehicle funding with optimum cash flow. Administration is kept to a minimum, company drivers have security and guaranteed mobility and the company receives the benefit of 'off balance sheet' funding.
Tell us the vehicle you want at the annual mileage you require and we will tailor the package to suit your needs. First Vehicle Finance will then acquire the vehicle for you and deliver it to any UK address of your choice.
At the end of the contract the vehicle is collected from you and your commitment ends (try our 'ONE-CALL' scheme).
Contract duration can be from 12 to 60 months on all new vehicles up to a total mileage allowance of 155,000 miles. On Used and nearly new vehicles the term will be determined by the age of the vehicle at the outset.
Ownership of the vehicle remains with the finance company during the contract period. We can offer you a purchase price to buy the car from us as a third party after the contract terminates.
Responsibility for insurance is with you as keeper of the vehicle and this must be fully comprehensive.
The finance company. This is one of the major benefits of Contract Hire. The finance company calculates a residual value at the time of quoting. If at the end of the contract the vehicle is worth less than originally expected, they are responsible for the loss.
The second-hand car market is very unpredictable, so why should companies risk their profits by gambling with an unknown vehicle sale price when they come to sell in two, three or four year's time? Contract Hire companies have dedicated used vehicle disposal departments that are expert at predicting and achieving the very best prices for their vehicles at the end of the contract.
This depends on the contract selected. If a non-maintenance contract is chosen, the customer is responsible for all routine servicing and maintenance costs under the terms of the agreement
Assuming a maintenance package is taken, the customer need never worry about any unexpected servicing or maintenance costs. A replacement bulb, a new tyre or a blown clutch is only a free phone call away from a quick, no-cost repair. This gives great peace of mind and allows the customer to run their business, rather than worrying about the running of vehicles. Try our 'ONE-CALL' scheme.
A Non-Maintenance Contract means that the customer is responsible for maintaining and servicing the vehicle as recommended by the vehicle manufacturer. However, the road fund licences are covered for the full contract period. Let us quote you!!
A Full-Maintenance Contract is where the supplier is responsible for maintaining and servicing the vehicle and includes all costs due to fair wear and tear. Additional facilities may be added to a Full-Maintenance contract such as RAC cover and relief vehicle cover. Let us quote you!!
Contract Hire guarantees that vehicles will be off the balance sheet.
This has the following advantages:
A deposit of three month's instalments is usually required. In certain circumstances, such as a new-start company, six month's advance payment may be required.
We arrange delivery and collection anywhere in the mainland UK.
We undertake to source your vehicle from our contacts in the industry at full fleet discount, including any specific promotions/support available at the time. If, however, you have a local, preferred supplier, we would be happy to order the vehicle from them on your behalf.
No! Ownership and the subsequent disposal responsibility remains with the finance company. If you do own the vehicle at the end of a contract, it means that you have to go through the inconvenience of disposing of it and arranging finance for your next vehicle.
First Vehicle Finance arrange collection of your old vehicle whilst delivering your new vehicle. Nothing could be easier. If a third party wishes to purchase your old vehicle this can also be arranged
Yes. 100% of the monthly rentals may be offset against Corporation Tax. For vehicles costing over £12,000 a proportion is disallowed. To find exactly how much is allowable a simple calculation must be followed. This calculation is commonly known as the 'Half the difference rule'.
12,000 + 1/2 (Cost-12,000) x 100%
For example, if a vehicle costs £15,000, this is how the calculation works.
12,000 + 1/2 (15,000-12,000) x 100% = 90% 15,000. Firstly take 12,000 from 15,000 (cost) = 3,000 Divide this by 2 (to find half) = 1,500 Add this to 12,000 = 13,500 Divide this by 15,000 (cost) = 0.9 Times this by 100 to find the percent = 90%
Vans are fully tax efficient and so are not subject to this equation.
If you wish to end the contract early a termination charge is payable. Typically, this is 50% of the outstanding monthly rentals payable.
The customer has three options available at the end of the contract period.
Charges are possible for two reasons: