Business Contract Hire agreements from Lipscomb makes your life easier by giving you access to a range of affordable and flexible vehicle funding packages. The monthly payments cover the hire of the vehicle and the Road Fund Licence for the agreed period, with options available to add a service and maintenance package
What is Business Contract Hire?
Business Contract Hire is a common option for all types of businesses, due to its flexibility and low cost compared to taking ownership of a vehicle. At Lipscomb Volvo, Alfa Romeo, Jeep, Fiat and Abarth locations across Kent, you will be able to find experienced specialists ready to help you find the right arrangement for you, as well as the vehicle or vehicles that suit your needs best.
Business Contract Hire arrangements – essentially, rental agreements between a business and a vehicle financing company over a fixed period – are suitable for anything from self-employed tradespeople to the managers of large fleets. Factors such as the length of the term, ultimate cost and additional services, such as maintenance, are highly negotiable and can often be amended to suit the changing circumstances of a business.
How Business Contract Hire works
Arranging a Business Contract Hire package is a fairly simple process. After a discussion with one of our
specialists, you can decide on your chosen model or models, the scale of your initial deposit (the size of which affects your monthly repayments), and your likely annual mileage limit (exceeding this makes you liable for a further charge at the end of the term).
Benefits of Business Contract Hire
The reduced administrative obligations and adaptability of Business Contract Hire, as well as not having to worry about a depreciation in the value of a vehicle or vehicles, are amongst the main attractions of this form of finance arrangement for tradespeople and fleet operators. There are also financial benefits; VAT-registered businesses can almost always reclaim at least 50% of the VAT paid on the leasing costs later, saving companies substantial sums of money. The inclusion of the Road Fund Licence in the terms of the leasing contract is another notable advantage of a rental package.
What to expect during your contract period
The cost of your deposit and monthly repayments entitles you to use the vehicle within the permitted mileage allowance – however, your business will be subject to an extra charge if the vehicle exceeds this during the agreed term. Naturally, you must be sure that your business will be able to make all payments; it is possible to terminate your BCH agreement early, but this may also make you subject to an extra charge.
What happens at the end of your contract
At the end of an agreement you simply return the car to Lipscomb and pay any extra charges, which may include exceeding the mileage limit and/or the cost of repairs not classified as being due to normal wear and tear.
For attractive, competitive rates on Business Contract Hire agreements, please come to Lipscomb. Our dealerships in Maidstone and Canterbury can offer a wide variety of vehicles. We can also guide you through other finance options and help you get the best deal.