In the UK the contract hire and leasing industry is very healthy thanks to a tendency for companies to provide vehicles to their employees for business purposes. Contract hire is a way in which businesses can finance vehicles; it is the process of hiring a vehicle from a provider for a particular period of time and then paying monthly instalments for the vehicle. The company from which the vehicle has been leased retains ownership and is therefore accountable for the associated risks. Once the leasing agreement has expired the vehicle is then returned to the leasing company.
There is a representative body for the industry within the UK which looks after the interests of companies leasing cars and to set standards for the leasing industry. This organisation is known as the British vehicle rental and leasing association and they have close to two million vehicles under their management.
The most common leases available to businesses last between twelve and sixty months but can be extended if required. The contracts are often tailored to specific business requirements and it is common for there to be a special car leasing offers when multiple cars are leased. It is not uncommon for leasing agreements to include a maintenance agreement, tyre cover and a relief vehicle should the one being leased breaks down.
Contract hire leasing is very popular with businesses due to its financial and administrative benefits. Firstly contract hire allows for a company to budget more accurately with regards to vehicles and keep track of their spending. Contract hire also improves cash flow for a company and is excluded from the balance sheet. It is also beneficial as there is no worry about depreciation as the company never actually owns the vehicle and therefore doesn't have to worry about its disposal. Finally contract hire is highly popular with VAT registered companies as they can claim back up to fifty percent of the VAT on the agreement.
As of April 2009 new rules to do with carbon emissions and business leasing were introduced where the tax relief on a leased car depend on the emissions of said car. These new guidelines have replaced the old rules relating to the leasing of expensive cars and it is now stated that any car with co2 emissions higher than one hundred and sixty one will have a fifteen percent tax relief disallowance.
There are over three thousand car leasing companies in the UK ranging from contract hire surrey to contract hire Durham so it is very easy for companies to set up a lease. As discussed there are many advantages to this practise and that is why so many successful businesses choose to use contract hire as a method of financing vehicles.
About Colbornes: The Colbornes Group is a company with almost 70 years' experience in the motor industry and is proud to have been the first importer of Volkswagen cars into the UK in 1949. evenflo car seat infant cover. We have since grown into one of the South East's leading motor retailers, with dealerships in Basingstoke, Guildford, Camberley, Walton-on-Thames and Woking. We also offer contract hire leasing and always have very competitive car leasing offers. A symbol of Luxury .
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