Vehicle Sales & Finance ? Contract Hire & Leasing for Business, Fleets, Commercial & Private Individuals. Keywords: Contract Hire, Contract Hire and Leasing, Contract Hire Leasing, Car Leasing, Contract Hire Broker, Cheap Cars, J. Charles, Auto Advantage, Car Finance, Courtesy Cars, Fleet Sales, Bodyshop Cars, Company Cars, Commercial Vehicles, Personal Contract Hire, Personal Contract Purchase

How do I know if car leasing is right for me

Are you the type of person who likes to change their car every few years...? If so, then ask yourself a few simple questions:How much did you spend when buying your last car?How long did you keep the car for?How much did you sell the car for?To work out roughly how much your last car cost you per month, let's do some simple arithmetic:[what you spent] minus [what you sold it for] divided by [number of months you owned it]Of course, you'll also need to add the cost of any road tax that you had to buy during the time that you owned the car and work out how much interest you paid out (if you took out a loan), or how much interest you lost (if you took the money from a savings account).And the costs and inconvenience don't end there; when you finally sold the car, how long did the process take and much did you spend on advertising. Even worse, if you part-exchanged your car, how much less than the market rate did the dealer offer you.On balance, when you add everything up - the costs, the hassles, the inconvenience - and you look at what you could have leased for the same money or less, you have to ask yourself: "why on Earth would I ever buy a car again...?"Still not convinced...? why not read "A typical new car buyer's journey" below:Contract Hire and Personal Contract Hire (PCH)One of the most popular forms of car leasing in the UK is Contract Hire (including Personal Contract Hire), which is available to both business users and consumers (private individuals).Contract Hire offers most of the benefits of car ownership, but without many of the hassles; in essence, you hire a brand new car for a fixed period - normally two or three years - at a predetermined annual mileage allowance to suit your needs.Contract Hire is a simple and very cost effective way to fund any number of vehicles. Simply choose the vehicles you want, we deliver your new car to your door and you pay a fixed amount every month.These payments go on for an agreed period of time, usually between one and four years. At the end of the agreement, we collect your car (which is then sold back to the motor trade) vehicle back and sell it. You can then choose another vehicle.Importantly you never own the vehicle, we do. As it never appears on your balance sheet, it remains a business expense. Because we take the vehicle back, we agree up front the mileage your drivers will do on an annual basis and the number of years the contract will run.Using this information, we calculate how much the car will be worth at the end of the contract, which is factored into your monthly payments.Why choose Contract Hire?There are many reasons why Contract Hire is so popular:Off balance sheet fundingVAT efficientFixed costs for the contract periodRemoves uncertainty of residual value fluctuationsTakes advantage of volume related buying powerReduced administrationDetailed reporting is providedCar leasing contracts are available with or without maintenance (which covers routine maintenance and servicing costs)Support services are available including fuel cards, accident management, and full roadside assistanceLow monthly rentalsThere's no large initial outlay and monthly payments are fixed, so it's good for cash flow and makes budgeting a cinch.You pay a fixed monthly rental and - at the end of the contract - hand the car back to the leasing company with nothing to pay (provided that the car meets the mileage and condition criteria agreed at the start of the contract).Hassle-free motoringSo you don't have the hassle of selling the car when you replace it. It also means you don't have to worry about the risk of falling used car values (known as residual values). If the second-hand car market drops suddenly, that's the leasing company's problem, not yours.Good for businessMost of the fleet management can be handled by the fleet provider, which frees up company resources and the funding isn't shown on the balance sheet, which reduces a company's debt liability and helps to improve your corporate credit rating.End of contractAt the end of the contract, fleet providers will charge you for any excess mileage and damage to the vehicle. These charges can vary from reasonable to very steep, depending on the fleet provider, so check the small print before you sign. Also, if you end a contract hire agreement early, the penalties can be stiff - typically 50 percent of the remaining rentals on the contracts.

There's Never Been A Better Time To Lease

balance basis.CO2 based corporation tax at a glance: CO2 Emmission output of vehicle 110g/km CO2 or less111 to 160g/km CO2161g/km CO2 orgreaterLeased Cars Tax Change100% of the lease rental can be offset against tax & profits for the duration of the contract100% of the lease rental can be offset against tax & profits for the duration of the contractDue to the Co2 giving a 15% lease rental restriction, 85% of the lease rental can be offset against tax and profits for the duration of the contractLeased Vans Tax Change100% of the lease rental can be offset against tax & profits for the duration of the contract100% of the lease rental can be offset against tax & profits for the duration of the contract100% of the lease rental can be offset against tax & profits for the duration of the contractLeased Vehicle EffectTogether with the ability to offset all of the rental gives the most tax efficient Whole Life Cost (WLC)Likely to be the most tax efficient option for leaseBenefits of leasing diluted by Minimum WDA available and the restriction on leased rentals. But often more financially effective than purchasingWhy are things changing?The changes are due to the government's targets to lower CO2 emissions and to encourage consumers and businesses into more environmentally-friendly and fuel efficient vehicles. The Chancellor of the Exchequer, Alistair Darling, has set the agenda to encourage businesses to own and use cars emitting the least amount of CO2 by linking the writing down allowance to the CO2 rating of the vehicle.Car manufacturers have also been set a target of reducing average emissions of new cars to 130g/km by 2012. The changes aim to simplify the administration process for fleets and reduce fuel and tax bills by encouraging switching to lower emission vehicles.Clearly, two identically priced cars may cost the same to lease or purchase, but, depending on emissions they could have a dramatically different after-tax cost, particularly as the corporation tax regime is now dependent on CO2 outputs. Vehicle Excise Duty (VED) and the scale charge used for Benefit in Kind (BIK) tax and computing National Insurance contribution calculations have been CO2 based for some years. Fleet managers are encouraged to review their existing fleet to see which cars costing more than £12K (expensive cars) would fair more favourably under the new regime.We are here to helpWe understand that the new rules will raise an amount of uncertainty, and will affect the decisions you make about your fleet. To help you re-evaluate your fleet policy, we have many experts across our business that can provide you with further advice and guidance in this area. For guidance and advice, please call us or email us using the contact details provided.Don't forget you can find all our car leasing deals here

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Car leasing, Contract hire and lease purchase for Business or Personal use. Cheap Van and Company Car leasing deals Bodyshop Offers and Courtesy Cars.

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