Contract Hire
Contract Hire is a very popular method of running and financing a car or van. It's a rental agreement, generally for 2-4 years with low deposits, sometimes with a maintenance package included and is great for fleets where a driver can effectively run the car himself without the expense of fleet managers etc.
It doesn't suit everybody however. It's a contract and very costly to exit early. The excess mileage clause and return condition are quite rigarously adhered to and some people are charged quite ruthlessly for tyres, bodywork and upholstery problems etc. If you are someone who likes to change his car, or where the drivers are not great at keeping cars in good condition - this is not for you.
The main aspect of contract hire is monthly cost - you know exactly what that car is costing every month, impossible if you buy or HP a car, as until it is sold and all the bill have come in, you don't know what it has cost you.
Negatively, there are 4 profit areas (supply, finance, maintenance, disposal) within a contract and the contract hire companies look to make margin in all of them, which can make it an expensive option if you don't approach it in the right way.......................
The only real way to buy contract hire is on price.............it's no good selecting a Ford Mondeo 2.0TDCi Zetec 5dr Auto with Metallic paint and sat nav and expecting it to be a good price you have to work a bit smarter.................because the supply price with contract hire is irrelevant and undisclosed, most manufacturers use it as a tool to increase martket share, run out old models etc. They can discount hugely (and do) without it ever affecting the forecourt or used prices on similar models. So the best way to buy using contract hire is on price - "I want a diesel family saloon to use as a reps car" - then we can find you the best car fitting your requirement that is being support by the manufacturer............this way you can save £100+ on the rental against a very similar model.
For advice and rates and to test this method - GO ON PUT US TO THE TEST TODAY!
