Lease Out Cars to Save Substantial Amount of Money
The concept of contract hire for vehicles seems to have become quite popular among individuals as well as business houses. For a company, replacing their fleet vehicles with cars taken on lease is a much smarter option as it saves them from paying a lump-sum amount at one time and the payment is spread across several months. Also, the lease companies include the servicing and maintenance of the vehicles, which also saves a considerable amount for the business-owner.
Once a car is bought and is out of the showroom, it loses a significant value. This is the reason why business houses that require providing vehicles for their workers or has the extensive use of cars and vans consider business contract hire as a good option. Renting a car or a fleet of car is economical and ensures the longevity of the business-house. It protects the car-owner from the heavy blow of the depreciating value of owned cars.
A car leasing contract is normally calculated by taking the difference of the new value of the car against the depreciating value of the car over the period of the lease. This means that less the time of the lease, less is the amount payable to the lease company. The business-houses that make use of a large fleet of vehicle regularly can make use of short-lease on cars because that is much more economical than taking a long-term lease. The car leasing companies also offer discounts sometimes if the company has several car leasing contracts with the particular lease company; this further reduces the cost to be paid by the business-house.
Business car leasing proves healthful to the financial condition of the business-house because of the following reasons.
The only major drawback of contract hire is that they have a set mileage and exceeding that would result in paying extra charges. But with all the benefits that business car leasing offers, this hitch can be easily over-looked. Contact any of the leading and reliable service providers to lease out a car today.
Once a car is bought and is out of the showroom, it loses a significant value. This is the reason why business houses that require providing vehicles for their workers or has the extensive use of cars and vans consider business contract hire as a good option. Renting a car or a fleet of car is economical and ensures the longevity of the business-house. It protects the car-owner from the heavy blow of the depreciating value of owned cars.
A car leasing contract is normally calculated by taking the difference of the new value of the car against the depreciating value of the car over the period of the lease. This means that less the time of the lease, less is the amount payable to the lease company. The business-houses that make use of a large fleet of vehicle regularly can make use of short-lease on cars because that is much more economical than taking a long-term lease. The car leasing companies also offer discounts sometimes if the company has several car leasing contracts with the particular lease company; this further reduces the cost to be paid by the business-house.
Business car leasing proves healthful to the financial condition of the business-house because of the following reasons.
- The company does not have to pay taxes because they are leasing cars for a fixed period and the service and maintenance costs are also taken care of by the contract hire company.
- Companies usually rent out a huge number of cars; this could help to reduce the leasing amount considerably.
- When companies are asking for bulk renting of vehicles, the contract hire companies might provide them offers like 24 hours roadside assistance or availability of fleet vehicle.
- Business contract hire is cost-effective because in the long run you will notice that the leased out car is paying for itself if the depreciating amount, cost of maintenance and service is taken into account.
The only major drawback of contract hire is that they have a set mileage and exceeding that would result in paying extra charges. But with all the benefits that business car leasing offers, this hitch can be easily over-looked. Contact any of the leading and reliable service providers to lease out a car today.
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