Jo Why Lee

London - United Kingdom

    The Benefits of Business Contract Hire

    August 14, 2013

    Mercedes Benz E Class - Hire Car

    As a woman in business, there is a always a pursuit to save money and to keep the overhead down. Recently this American woman learned more about the business practices in the UK. One of the options for businesses in the United Kingdom is the chance to register for Value added Tax (VAT) and take advantage 100% tax free business equipment and items obtained for resale. One of the big challenges in business is how to maintain and regulate the use and cost of a fleet of business vehicles. Business Contract Hire is a solution to this challenge.

    Benefit: Ownership

    One of the important aspects of Contract hire of cars is that ownership of the fleet of cars when the rental period is complete. This is important because the company that you contract with is going to handle the car repairs and upgrades.  Also a car needs to be retired that will not fall on your companies hands to deal with. The ownership of the full purchase and replacement of the car falls to the owner, not the renter.

    Benefit: Rental

    The lease agreement between your company and the contract hire will encompass all the cost for using the car fleet during your contract time. This will include cost of the car, rate of depreciation, contracted time, mileage, and all other services that you agree on. This is where you collaborate for your best rate. While the car hire company retains ownership, you will pay surcharges to balance out cost. So take the time to research and negotiate for the services you need.

    Benefit: Maintenance

    Car Maintenace

    When all is said and done one thing that every business worries about is the random break down of a company car. With the Contract Hire car fleet, you can work in maintenance and repair agreements into your contract. This will protect your company and employees. With a dispatch of a new car to the employee and a tow truck for repairs, you company will reduce administrative paperwork. This allows your employees and administration to focus on their work and the car hire company to manage your fleet responsibly.

    The Contract

    contract to sign

    To start the process you will pay a low initial payment that will total approximately 3 months of rental. The rental allowance is the part of the contract that will provide the accelerated tax benefits for your company. Throughout the contracting process pay attention to where the benefits come into place for you. Pay attention to the maintenance agreement and how the VAT works for you. At Autograph Contracts your account agent will explain to you the risk and rewards balance sheet. This will benefit your bottom line and explain to you were all your funding is working for you. Your monthly fleet will be ready for you as you demand their need and the contract will outline these expectations. Furthermore the outline of outgoing and running cost will help you to organize your budget proving more control for your company.

    The challenge of keeping overhead down and choosing how to manage your company’s cars, is one that plagues any business. By using a contract hire car fleet, you can relieve many of these headaches and focus on the enterprise of your business.

    Read Jo's other blog entries >

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