Business Contract Hire
If you do not want to own your vehicles outright, Contract Hire enables you to ‘hire’ your vehicle over a specified period of time – one, two, three, four or five years. You pay a deposit – usually the equivalent of three monthly rentals – and then your monthly rental is calculated over your preferred period of time.
By far the most popular way for a business to finance their fleet of company cars - over half those registering new business vehicles choose to fund with a business contract hire arrangement. This is due in part to the lower fixed monthly payments that can be arranged. It’s an ideal choice if you don’t wish to own your vehicle; like to change your vehicle frequently; benefit from a low initial expense, and require your business capital for other company investments.
The Benefits of Contract Hire for your business fleet vehicles includes:
- Expect to pay a deposit of between 1-3 monthly payments upfront, far less than other forms of vehicle finance.
- The fixed monthly fee is calculated on the vehicle type, price, mileage and residual value (that’s the estimated value of the vehicle at the end of the contract). The higher the value, the lower the monthly payments!
- Contracts generally run between 12 and 48 months - offering this flexibility affords you the luxury of changing your vehicle for a new, or higher specification model more frequently.
- Build a servicing, repairs and/or regular maintenance package into your contract.
- Enjoy a tax break as business contract hire allows you to offset the rental fees against taxable profits.
- The vehicle does not appear on company balance sheet, which may assist with your company’s account gearing/image etc.
- Available on new and used vehicles
Business Contract Hire – Be Mindful of
Calculate estimated mileage carefully otherwise you could find yourself paying a higher monthly fee than necessary, or by under-estimating you’ll incur additional fees for extra mileage!
Also, there is no buy-out at the end of the contract.
To further discuss this finance option, please call the franchise branch you require and ask to speak to sales or, for business fleets, please call us on 01233 220277.
Company Information
© 2021 The JCB Group
Reg Office: Bailey Drive, Gillingham Business Park, Gillingham, Kent, ME8 0PZ
Reg. Company Number: 3597175
VAT Reg. No. GB 703 0471 81
Financial Disclosure
The JCB Group are authorised and regulated by the Financial Conduct Authority for consumer credit activities FRN: 684394 and are an appointed representative of Autoprotect (MBI) Ltd for Insurance distribution FRN: 312143.
The JCB group are a credit intermediary meaning are a Credit Broker not a Lender and can introduce you to a carefully selected number of lenders. We typically receive a fixed commission calculated by reference to the vehicle model or amount you borrow, for introducing you to a lender but this does not affect the interest charged on the agreement, all of which are set by the lender.
We Subscribe to the Motor Industry Code of Practice. The Motor Ombudsman Ltd act as an arbitrator in any unresolved consumer disputes. The Motor Ombudsman Ltd are a Chartered Trading Standards Institute Approved (CTSI) Alternative Dispute Resolution Provider.www.themotorombudsman.org.
The JCB group are a credit intermediary meaning are a Credit Broker not a Lender and can introduce you to a carefully selected number of lenders. We typically receive a fixed commission calculated by reference to the vehicle model or amount you borrow, for introducing you to a lender but this does not affect the interest charged on the agreement, all of which are set by the lender.
We Subscribe to the Motor Industry Code of Practice. The Motor Ombudsman Ltd act as an arbitrator in any unresolved consumer disputes. The Motor Ombudsman Ltd are a Chartered Trading Standards Institute Approved (CTSI) Alternative Dispute Resolution Provider.www.themotorombudsman.org.