Fleet contract hire gives you the opportunity to provide your workforce with vehicles whilst minimising the initial outlay. Contract hire is a way to finance your fleet vehicles; you can hire your fleet of vehicles from a vehicle leasing provider for a set amount whilst paying a specified monthly payment to rent, or lease them.
One of the main advantages of vehicle leasing is that the leasing company retains ownership of the leased fleet of vehicles which means that you are not responsible for the usual risks associated with owning the fleet or maintenance costs other than those stipulated in any initial contract.
Another benefit is that leasing a fleet is considered off the balance sheet which means that the budget for your fleet leasing does not count as debt in your finance books.
In a difficult economic climate running a fleet can be extremely expensive and fleet contract hiring can be the perfect solution for balancing your budget with your brand image. Whether you have a fleet of sales people or tradesmen your first impression is important and having a fleet of well presented, new vehicles can give you the edge over competitors. By contract hiring your fleet you can ensure you present your bran well affordably.
When researching a fleet contract hire company, there are some important points to bear in mind.
The vehicle hire company should stock and hire a wide range of modern vehicles. For a sales vehicle you should be looking for well presented vehicles including hatchbacks and sports coupes. For trades vehicles you should be able to find the vehicles which best suit your needs. For all types of vehicle there should be a range of choices including mileage, engine size, age.
It is also worth remembering that not all makes and models with be available straight away, popular models such as VW's and Audi's may have a longer waiting time, and as such a higher price, compared to other vehicle manufactures.
You should also be given the choice of how much you want to pay for the contract hire.
In some cases you may be able to pay in one lump sum or, usually more popular, spread the cost over the term of the lease. Though spread payments might be easier if you can afford to pay straight away you will end up paying less interest.
The amount of time you hope to lease your fleet is also an important consideration. If you lease over a long period you may find the vehicles start to deteriorate, also if you downsize the fleet for any reason you may end up paying additional costs. On the flip side if you decide to lease vehicles short term you will end up with more admin on your hands as you renew and upgrading vehicles regularly can cause disruption and internal costs.