Commercial vehicle contract hire is a type of vehicle financing that includes comprehensive maintenance, making it an excellent solution for business owners who want truck or HGV finance without the responsibility of servicing.
When entering a contract hire agreement, you must pay fixed monthly payments for a set period, usually between two and four years. At the end of the agreement, the vehicles are returned to the contract hire company responsible for their resale and management.
Contract hire advantages
A contract hire agreement does not typically include insurance, so your business will need to plan for insurance before your vehicles are delivered. While this is an extra cost, there are plenty of advantages to using contract hire as your vehicle financing option:
- Reduced financial burden: With fixed monthly payments and no large capital outlay when setting up a new contract hire agreement, organisations can enjoy reduced financial commitment compared to other finance solutions.
- Comprehensive maintenance package: All servicing and maintenance costs (including tyres) can be included in one package tailored to meet your needs. This helps reduce unexpected repair bills throughout your agreement.
- Improved cash flow: With a fixed monthly payment agreed upfront, there’s no need for large lump sum payments or fluctuations in the budget due to market changes or fluctuations in mileage – leaving more money available for other investments or projects within your organisation.
There are many different ways to finance your vehicles, such as a finance lease or operating lease. Contract hire provides an effective solution for business owners who want truck or HGV finance without worrying about additional maintenance costs. This flexible solution will help you manage your operational requirements efficiently – enabling you to focus more on growing your business rather than worrying about how best to manage your vehicle assets.
Speak to us about your contract hire options today.
