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Posts Tagged ‘contract hire’

Van and car leasing is currently helping many businesses to weather the current economic crisis. Many businesses have been forced to look carefully at their cash flow and capital expenditure. Commercial vehicle leasing provides businesses with an effective way to ensure that they have the transport they need with fixed, known monthly repayments.

Van leasing and contract hire have become increasingly popular as businesses recognize the benefits of leasing over outright purchase. A few of these advantages are:

• Fixed, known monthly payments enabling businesses to accurately forecast their finances;
• Low initial down payments mean that businesses can secure brand new, top specification vans for very little initial outlay;
• Maintenance and servicing can be included in the lease price which can save a lot of headaches;
• Leasing is a great way to lessen the impact of depreciation;
• The leasing company can often provide commercial vehicle insurance at very competitive rates;
• No problems disposing of vehicles at the end of the lease period;
• There are tax benefits to leasing as it is classed as rental which means that 100% of the lease charge is tax allowable.

Although van leasing is generally advantageous to businesses there are some additional considerations that should be borne in mind. One thing you may need to do is accurately estimate your anticipated mileage. Some contracts impose penalties if the anticipated mileage is exceeded but there are contracts that provided unlimited mileage.

Another important aspect of the contract to consider is exactly what is included in the maintenance agreement. Some lease contracts include replacement tires and even replacement windscreens, but always check the details.

Always gather several quotations when shopping around for a good van leasing contract and compare them in detail. Always be certain that you are comparing the exact same vehicles with all of the same options.

Like company car leasing, van leasing is increasingly recognized as a financially viable option for providing a business with the transport needed to stay in business.

Thousands of Honda employees have returned to work at the company’s Swindon plant after production was halted for four months in response to the struggling car market. All 3,400 of the returning workers will be taking a pay cut until 2010 but are pleased that their jobs are finally guaranteed after spending the last four months worrying about the possibilities.

The factory was forced to close while the company decided on the best way of dealing with the problems caused by the global recession and the effect the economic downturn has had on the number of car sales and contract hire agreements. The motoring industry has been hit hardest of all and almost all car manufacturers are having difficulty staying afloat, but the situation at Honda and how they have recovered could stand as an example to other companies who are still struggling. Their decision to temporarily close the Swindon factory has allowed them time to make important decisions about the future of the business as well as perform long-planned maintenance work. The production lines were stripped and rebuilt during the months the factory was closed, and they took the opportunity to redecorate the whole plant, where possible by employees who had the specialist skills required for the job. 

But it’s not all good news. A further 1,300 Swindon employees chose to take voluntary redundancy when the factory closed, many of whom are still out of work. And though the workers now have peace of mind that their jobs are safe, their pay has been cut by 3%, or 5% in management roles, for the duration of the next 10 months. The reopened factory is currently only running at 50% capacity, with a projected output of 113,000 vehicles in 2009, less than half the original intended number of 228,000.

In short, it’s a small victory but the company is not out of the woods yet, Honda car leasing and sales figures will have to increase significantly over the next few months if they want to avoid any further disasters. The new Honda Jazz model, due to start production at Swindon in September, should help to boost sales and give a clearer picture of the long-term future of the Swindon factory. Not to mention as the economy begins to recover buyers will be taking advantage of low car prices as across the board from Honda to Mercedes, car leasing and purchase prices are cheaper than ever.

General Motors, one of the world’s largest carmaking companies, has filed for bankruptcy protection in America. For as long as cars have been around, General Motors (GM) has been one of the three largest producers of cars in America as well as one of the world’s biggest car companies. Now the car industry is on its knees, and of the three biggest car manufacturers in America two have now been forced to seek protection from their creditors by declaring themsleves bankrupt. But what difference will all this make to us?

Well, for car buyers in the UK, the answer is probably not a lot. If you have a car that was made by GM, you don’t need to worry about the possibility that you might not be able to get parts for it in the future, as the company is still in business and hasn’t ceased trading. With the financial protection of the US government, they predict the company will be reconstructed in as little as three months. In addition GM Europe, which consists of the British brand Vauxhall and the German Opel, has already been sold off to a Canadian company who have agreed to do everything in their power to save the 5,500 UK jobs that could be at risk.

For consumers looking to purchase a new car in times like these, it could well be that leasing or contract hire could be a better option than buying outright, as it gives you more freedom of choice and wouldn’t leave you in the lurch later if the manufacturer did go out of business. Certainly if you are worried about buying a car by one of the main manufacturers tied to one of the companies that is at risk such as Vauxhall or Ford, car leasing could put your mind at ease.

Whether you’re looking for a handy little car about town or a fancy new BMW, car leasing gives you a wider choice of vehicles including those that may otherwise have been out of your price range for buying outright. Your agreement takes into account your projected mileage and wear and tear, so your car won’t decrease its financial value over the course of the contract and at the end of your contract you can simply trade it in for the upgrade of your choice. While the car industry is struggling to stay afloat, leasing could be the most effective method to ensure that any future disasters don’t affect you too much!

In this day and age people want a brand new car every few years or so, this leads to people getting themselves in debt with huge amounts of bills. People have become so obsessed with getting products that are better than there friends and family that they are splashing out on things that they simply cannot afford.

But what I do not understand is why do these people simply just not go for the car leasing option? It can work out a whole lot cheaper, lets quickly take a look at some of the benefits that can come  from leasing a car instead of paying for one.

1) You do not need to worry about any extra costs when you lease, because all breakdowns would be covered by the company.
2) If you sit down and work it out, if you purchased a car on finance that cost £20,000 over a 7 year period you would probably end up paying back around £28k, then once you have finished paying for it the car would have depreciated so much that it would not even be worth £2k, so you would have ended up paying all that money for a vehicle that is now breaking and not worth a penny. If you then look at contract hire that you will see that you get a brand new vehicle for 2 years at the price of £400 per month, which is a vast amount cheaper and then you can hand it back and get another brand new one or just choose to simply buy the current one you have been driving all this time.

For great honda car leasing deals and bmw car leasing deals

While I was driving to the office about a month back I started to get stuck in a huge traffc jam, I was getting really bored and fed up. I suddenly found myself day dreaming, I quickly glanced over onto the other side of the road and all I could see was brand new vehicles being driven. There I literally was in my car that was falling to bits whilst everyone else was driving their own brand new motors. I mean where to they find the resources?

After briefly thinking for a while, I came to the conclusion that not everyone can afford brand new vehicles, so here are my ideas.

1) They buy the cars on finance, more and more people are getting things on finance that they really cannot afford to pay off, and then is ultimately why the economy has come crashing down in the first place. People go and get the best vehicles around and they literally cannot keep up with the monthly payments that they commited themselves too for so long.
2) In my opinion this is how a lot of people are getting their vehicles and it is the best possible way, something that could in fact overtake buying vehicles is car leasing. You just pay a monthly fixed rate for a new gleaming car and you do not have to worry about all of the repair costs. At the end of your yearly or two yearly contract you pass the car back and then get yourself another brand new one.

To be honest the second option sounds so interesting that I might just go a lease a honda tomorrow.

Do you need to lease a vauxhall

Buying a new car is a big decision, especially now when times are hard and money is tight. There is a seemingly neverending supply of vehicles to choose from, not to mention all the different methods of payment. Of course you want to know you’re always getting the best deal, but sometimes it can be hard to negotiate the minefield that is the car market, and sort the good deals from the bad.

Because buying a car doesn’t have to be about paying all that money at once and settling for whichever is the best car you can afford. There are other options like leasing or contract hire, which usually mean you can get a better car for less money. So if you always fancied a Mercedes but didn’t think you’d ever be able to afford it, Mercedes car leasing could mean that you could walk away with your dream car right away, and pay it off in affordable instalments over an agreed period.

But finding the cheapest deals is not always that easy. Leasing companies offer loads of different options and it’s important to know exactly what you’re looking for to get the most out of your contract. A straightforward lease deal takes the total cost of the car, taking your projected mileage and usage into consideration, and splits it into equal monthly payments. At the end of the lease period, once the total cost of the car has been paid, ownership of the car usually transfers to the customer. Whether your dream car is that Mercedes, an Audi or a BMW, car leasing gives you a wider choice of vehicles that you wouldn’t necessarily be able to afford outright.

The alternative to leasing is to enter a contract hire arrangement. The main difference between contract hire and leasing is that the customer does not own the vehicle at any point but insead pays a fixed monthly hire fee, again calculated from the total worth of the car, the estimated future cost, and projected mileage. This option is often preferred by those looking for commercial vehicles as most deals have servicing and maintenance costs included in the monthly fee, so there’s no danger of getting hit with large bills if anything goes wrong. At the end of the contract agreement ownership does not pass to the customer but there is the option of renewing the contract and upgrading to a newer model, another reason this is the perfect option for people looking for commercial cars or vans. Some private owners might rather have a car they can call their own but there are personal contract hire deals available, as well as contract purchase deals. With contract purchase you have until the contract ends to decide whether or not to keep the car, for a previously agreed cost based on the car’s value for resale.

In the current global recession crisis, the largest proportion of the public are all feeling a little bit nervous as to what tomorrow will hold. Those amongst us who are lucky enough to have jobs may have them whipped from underneath our feet at the drop of a hat. Those of us who don’t have jobs are left wondering if we will ever be given the opportunity to work again. Regardless of your current monetary situation; the current economical climate has got everybody a little bit on edge.

 A large proportion of people have decided to start their own business as a way of getting back into the workforce without relying on financially-stricken companies employing them. This, in its basic essence, is a fantastic idea, especially if you have a trade profession or a particularly detailed and fool-proof business plan. The one of the majordrawbacks is the initial outlay that can often make very negative impacts on the new business-person’s balance sheet. One of the largest proportions of this outlay is often the purchasing of a fleet of vehicles.

Now, I may have no sure fire way to make sure your business succeeds, but I can offer a valuable tip into ensuring that your initial earnings are not going to be swallowed up by paying for vehicles. I have two words that may be of great interest to you: Contract Hire.

Contract Hire is a flexible system of financing that allows you to hire the vehicles you desire over a pre-arranged period of time. The businesses that offer these services often make concessions for new businesses and will set up payment rates that are more realistic to your financial capabilities. With options such as buying the vehicles when your accounts will allow it, mean that Contract Hire is a valuable system for giving you a leg up into the world of business and only asking for larger payments when you and your financiers are completely comfortable with it.

For anyone looking into starting their own business and require anything from one car to a fleet of light commercial vehicles; Contract Hire is a great way of getting started.

Starting a business is a precarious endeavour, requiring initial heavy investment, long days trying to get the business off the ground and a lot of patience. Depending on the nature of the business one of the most expensive initial outgoings is likely to be vehicles, especially if you require a fleet of light commercial vehicles. Finding space in the budget for hundreds of thousands of pounds is a very frightening prospect before your balance sheet even shows much in the way of income, let alone profit. There are definite solutions available that can help alleviate a considerable amount of this initial pressure and supply you, the business owner, with a viable and cost-effective solution; contract hire.

Contract Hire allows you to be more in control of your initial outgoings by providing you with all the vehicles you need on a payment scheme that will suit the size and structure of your business. Similar in basis to finance from a car dealership, you will be able to work through which payment plan is likely to suit your accounts best. By accuratelyforecasting your monthly income, you will be able to set up a workable finance scheme that will allow you to start seeing immediate profitability from the scheme.

Days Contract Hire have been providing such business solutions for many years now and have built up an enviable reputation in the industry as a trustworthy, family-run business. They are backed by an independent but financially solvent company, which will ensure that your investment is safe in these economically shakey times providing you with the peace of mind that other establishments couldn't offer you. They offer a series of finance options including Contract Hire, Lease Purchase, Rental and Personal Contract Hire. Whatever your needs regarding fleet contract hire, Days Contract Hire are a commercially prudent choice.

When you arrange a contract lease with Days Contract Hire, you are assigned a personal Account Executive, who will deal directly with you every time you need to contact them. This dispenses with lengthy phone discussions, as your account manager will have dealt with you previously and will have already built a rapport with you and your staff.

Contact Days Contract Hire for more information.

Car leasing, personal contract purchase, contract hire, lease purchase and car loans are all different ways to finance the cost of cars and vans. Many people are confused by the differences in these financing options so I thought I would focus on ‘contract hire’ and explain how this technique works.

Leasing addresses one of the biggest issues associated with the acquisition of new vehicles and that is depreciation. As soon as you’ve been handed the keys to your brand new motor its value falls through the floor.

When you take out a car lease the residual value of your selected vehicle is calculated. The is the estimated value of the vehicle at the end of the agreed lease period based on the anticipated mileage during this time. The calculated residual value of your chosen vehicle is then deducted from either the current manufacturers retail price, or a value agreed with the leasing firm, and you will pay the remainder through your monthly lease payments. So the higher the residual value as a proportion of the current value, the less you will need to pay each month.

Contract hire is a popular vehicle financing technique that isparticularly beneficial for customers who are registered for VAT such as small businesses and self employed people. If your vehicle is used exclusively for business purposes you can reclaim 100% of the VAT. Even if you use your car or van for some personal use you can still reclaim 50% of the VAT.

In a contract hire agreement you actually hire the vehicle for an agreed period, usually for between 12 and 60 months during which time a fixed rental is paid, based upon the mileage. At the end of the agreed contract hire period, as in the case of car leasing, the vehicle is returned to the supplier. You will not be surprised by any unforeseen disposal or depreciation costs.

Contract hire can optionally include full vehicle maintenance which may include routine servicing and replacement tyres. Up to 100% of your contract hire rental charges can be offset against your taxable profits and minimal capital outlay is required.

It’s no surprise that contract hire is the favoured vehicle financing option for many businesses and self-employed people.

For cheap car leasing I recommend Nationwide Vehicle Contracts.

The car gadget industry is growing on how many are released every year. The most popular can be fitted and unfitted easily which is especially important when you’ve got a car contract hire. The gadgets listed are the ones I think are the best.

Time to show some messages at the back of the car.
A great way to tell people what you really think about them, even better write out how's my driving, I dont really care. A great way to have a laugh in the car.

Econav
Doesn't compete with the main rival tom-tom but it's great for everyone who loves to be environmentally friendly as ot chooses the most fuel-efficient route to take.

The in-car safe.
Good if you need to keep any other gadgets locked away. Many of these safe's can be attached to the car without any mess however, what happens if your whole car gets stolen?

The alcohol breath tester.
Brilliant for either a laugh or to see if you really have gone over the limit. Not sure that having it in the car is the best message to put out, but there you go.

More money gone to Dad
There is no way I can afford lessons but still my dad moans for having to take me everywhere I go, simple answer is buy me lessons! The money I do have will be gone with this gadget as it records how much you need to pay for every lift you get, hence the name. Brilliant for dad’s not so brilliant for everyone else.

The fan for the car.
A great idea for all those cars that don't have air conditioning. Keeps you cool for as little as £4, you cant argue with that.99 you can’t really go wrong.

The speed camera moniter.
These are perfect for the motorist, (most of them) who loves to speed in their cars. Goes off whenever you are near one which is perfect as you have time to slow down. However it cant tell you where the police are so watch out!

The Tom-Tom gadget
Really has got to be no other competition. Stops all arguments about being lost and you can have numerous voices installed onto it as well.

Most of these gadgets are removable which is brilliant if you are always changing cars. Car contract hire is a brilliant idea and you can carry the gadgets from perhaps a Punto all the way to as top of the range Audi with a Audi contract hire.