Business Contract Hire is Affordable and Hassle-Free

Business contract hire means leasing out a vehicle for a fixed term with a fixed monthly rental for the purpose of business. It has a number of advantages over purchasing a vehicle. It helps businesses to save a lot of money by avoiding losing money in depreciation. It also helps to free up capital which can be used to further the cause of the business. Leasing companies understand that different businesseswill have different needs and to take care of them, they provide individualized business car leasing deals that will satisfy their purposes perfectly. This article is on the benefits that one can enjoy, if they opt to lease.

Leasing is a very popular and a good alternative to buying a vehicle. A vehicle can be leased out for a period ofup to 60 months, after which the car is simply handed back to the leasing company. It is a very cost-effective option for all types of business. To suit the individual needs of different businesses, leasing companies offer tailor-made business lease deals.

The fixed monthly rental payable to the leasing company is calculated on the basis of the mileage limit and the agreed leasing period (months). The payments are designed to cover the depreciating value of the vehicle and the initial cost versus the future value of the vehicle. If the business is leasing out a fleet of vehicles or has developed a relationship with the leasing company, it is quite possible to get a discount on the total leasing value. By paying a little extra, the user company can include the cost of the maintenance and servicing of the vehicle with the total monthly rental.

The key benefits of business contract hire are:

• Initial payments are low: This is one of the most obvious advantages of car leasing as compared to purchasing a vehicle. The users are generally asked to pay a three-month up-front payment, which is a small percentage of the total value of the vehicle.
• Involves less risk: The monthly rentals payable by you is based on predicted levels of depreciation. In case there is any unpredictable depreciation risk, it is covered by the leasing company.
• Monthly payments are low and fixed: The factors that determine your monthly payments are the type of vehicle that you choose to lease out, the market price of the vehicle and the estimated value of the car at the end of the lease term. This means that the higher the residual value of the car, the lower will be your monthly payments. You can drive high-end, luxurious cars by paying a fraction of its purchase value. The agreed monthly rental is not even subject to the market fluctuations.
• Hassle-free: You can pay the leasing company an additional fee to take care of the maintenance of your vehicle.
• Tax benefits: Since, you personally do not own the vehicle and the ownership rights remain with the leasing company, you may not have to pay as much tax against the use of the leased vehicles.
• Availability of capital: The main aim of any business is to grow and earn profit. Leasing a vehicle will help to free up your capital, which otherwise would have been invested in depreciating vehicles. The money saved can then be invested in other important aspects of the business.

Leasing takes care of your needs for vehicles while helping you to save huge amounts of money.

The author Brad Carlton has a vast knowledge based on car lease deal and has already written informative articles based on personal car lease,business car leasing related topics.