| A car hire contract is a term used for hiring cars | | | | of car hire contract are that payments are low, |
| on contract for fixed rental schemes with low | | | | and a fund license is included with the period of |
| initial payments. It is indeed a very competent and | | | | contract with full maintenance packages included |
| professional method of financially supporting | | | | for an extra fee. |
| business vehicles. Rentals for car hire contracts | | | | Contract hire is a funding method specially made |
| include road tax for the period of the contract. All | | | | for maximum benefit for VAT registered |
| vehicles are offered a three-year warranty by | | | | customers. Car hire contracts provide a duration |
| the manufacturers. Rentals may counterbalance | | | | of 12 to 60 months for pre registered vehicles |
| against taxable profits. Money invested in buying | | | | and 18 to 60 months for new brand vehicles. |
| company vehicles is not advisable as nowadays | | | | Mileage allowance is given for 160,000 miles. The |
| cars can be easily hired for contract. Money | | | | customer is responsible to bear the insurance of |
| determined to be spent on purchasing vehicles for | | | | the vehicle. Full maintenance costs if included in car |
| the company can be used to develop business. | | | | hire contracts, then maintenance as well as |
| This investment in business will yield good profit | | | | servicing charges and the supplier maintains wear |
| ratios. | | | | and tear of the vehicle. |
| Driving cars for a fixed amount each month | | | | Termination charges have to be borne by the |
| reduces the burden of maintaining it for lifetime. | | | | customer if he wishes to end the contract early. |
| Contract hire cars are out of the balance sheet, | | | | Generally, 50% of the balance monthly rentals are |
| so there is no risk of losing money on your | | | | payable as termination charges. |
| company vehicles. Paper work for hiring these | | | | Other charges will be charged in case of damage |
| cars is also done by post or fax. The advantages | | | | and it is not repaired. |