Benefits of Business Contract Hire

Contract hire can be an extremely beneficial tool for the modern business as it gives a company the freedom and scalability needed to adapt to an ever-changing marketplace. With a lifespan of 2-4 years, the average contract lease is short enough to allow for fluctuations, but lengthy enough for a business to get the maximum amount of value from its fleet of corporate vehicles. Whilst the value of both owned and leased cars depreciates at the same rate, vehicles under business contract hire can be returned and replaced once their value peaks.

Advantages of fleet management

Contract hire is a system with several advantages, including a more sophisticated level of vehicle management. With a suitable lease from a reliable contract hire company like AMT Contract Hire & Leasing, keeping tabs on a large corporate fleet couldn’t be easier. If all of the vehicles are hired as a single unit they’ll depreciate, and eventually be replaced as a single unit. This practice eliminates the need to manage a complicated system of rotation and replacement. Additionally, fleet contracts can provide huge savings often worth thousands of pounds.

Tax incentives for businesses

Another benefit of business contract hire is its tax advantages. As a majority of corporate vehicles have some degree of personal use a company can claim refunds of 50% of the VAT on the finance element of car contract hire. In short, this means that £1330 in VAT could be instantly saved on a three-year lease at £400 + VAT per month. For commercial cars, up to 100% of the VAT can be reclaimed subject to Inland Revenue restrictions. A business cannot reclaim VAT on fully owned vehicles so, naturally, leasing proves to have an edge over buying.

With just one quick phone call to AMT Contract Hire & Leasing your business could be reaping the benefits of an efficient, cost effective fleet management system. For more advice on the many advantages of contract hire, or any other information regarding contract hire visit AMT Contract Hire & Leasing, or call an expert direct today on 0844 826 2300.

This was posted in Bdaily's Members' News section by AMT Group .