IF you’re an SME and thinking about using contract hire for the first time – perhaps through leasing provider Arval – what should you look for?
Did you know?
- Contract hire works for business
- Arval says it’s the most popular company vehicle funding method in the UK
Let’s start with the contract hire bit first.
It’s a method of funding your business car – following a deposit (three months in advance), you pay monthly for the use of a car over a set period of time and mileage. At the end of the contract term you hand the car back to Arval.
Contract hire gives you:
- Cost control – a fixed monthly cost makes budgeting easier plus there are tax benefits, which you should consider with your accountant
- Frees up capital – new business cars without the up-front costs, freeing up money for you to invest in your business
- Competitive costs – you will benefit from our buying power which you’ll see in the form of lower monthly rental costs
- No depreciation risk – we take care of that because the car always belongs to us
- Any vehicle – choose from the full range of cars and light commercial vehicles
- Less administration – allowing you to focus on your core business
If you like the idea of contract hire but what’s putting you off is fixing the mileage you’ll cover – then don’t, says Arval.