Simply, it is a fixed term hire of a vehicle, with a contracted mileage, supplied with or without a maintenance package
Contract hire provides for fixed cost motoring, and a clear agreement which lists any included services
A vehicle is (usually, bar some exotic options) a depreciating asset, and the risk of any change in residual value is taken by the leasing company
All new vehicles come with a full manufacturers warranty, providing peace of mind surrounding additional costs
You can add a maintenance package to cover; Servicing, Tyres, other wear and tear parts, and comprehensive breakdown cover.
A contract hire comes with a contractual mileage limit. There are excess mileage penalties, so it's good to monitor, and amend if needed
Our entire panel of funders, are members of our trade body (BVRLA) who oversee the ‘fair wear and tear’ guide, providing clear guidance
Our funding panel combined have over 1 million vehicles on the road in the UK, and wholesale discounts that lease vehicles attract, great value for you.
There are many ways to fund your vehicles, and our business is helping you make the right choice. We are business and personal vehicle leasing and contract hire specialists. Contact us to discuss your needs, and you can be sure of great service, and competitive rates. Here is a little more information on the various products we can offer:
The most popular method of vehicle funding, based on a set term and anticipated mileage given at the outset (which can usually be amended should needs change, as part of our pro-active mileage monitoring process, designed to help you avoid excess mileage penalties.) A fixed term contract is entered in to which is typically 2, 3, 4 or 5 years, and with contract hire the charge to hand back early (early termination) is usually 50% of remaining rentals. The major funders we partner, all work to BVRLA (our industry trade body) fair wear and tear guidelines.
As opposed to owning, taking the residual value risk, and dealing with re-sale, this form of finance offers simple, fixed cost motoring, which can include the add on of a full maintenance package for convenience, to cover: tyres, brakes, wear and tear parts, servicing, and breakdown cover. (Road tax is provided for the full term with contract hire.)
Available to businesses who have a fleet insurance policy that covers hire vehicles.
Leasepoint Rental offer unmatched vehicle availability, and can deliver cars and vans to UK mainland addresses within 2 working hours usually. We have a preferential tariff owing to our large combined spend with major rental companies.
Should your business use daily rental, talk to us, or look at our rental page located in our ‘fleet services’ tab.
As with Contract hire for business use, this form of finance is a popular method of vehicle funding. Commonly used by individuals in receipt of a car allowance.
Refer to our ‘Contract Hire’ box above to see how this funding method works.
We are also able to provide Personal Contract Purchase and Hire Purchase at competitive rates. These forms of finance are suitable for businesses and individuals looking to finance a new or used vehicle.
Contact us if you are looking to finance a vehicle.
With this method of funding, you choose to pay either the entire cost of the vehicle, including interest charges, over an agreed period or pay lower monthly rentals with a final payment based on the anticipated resale value of the vehicle. With a finance lease you do not take automatic ownership of the vehicle at the end of the term. Instead, you have the following options:
1. Continue with the vehicle on a peppercorn rental (otherwise known as secondary hiring period) once all repayments are made. This is an annual one off payment to keep the lease live, until you are ready to sell to a 3rd party.
2. Nominate a 3rd party ( with most funders this can be a partner, director or any other 3rd party) at any time once all payments are settled, to sell the vehicle to. You decide the sale value, and a fee of 0% to 5% of the proceeds of sale value, are kept by the leasing company.
3. Hand the vehicle back to the funder, who will dispose of the vehicle at auction, and will charge you a circa £300 disposal fee.
Usually, finance lease does not come with the option of a maintenance package, so you would be responsible for maintenance of the vehicle. (Road tax is provided for year one with finance lease, and would be charged on to you for further years.)
Finance lease is sometimes the ideal solution to customer needs, especially as it provides the same VAT and tax efficiency as contract hire.
Outright purchase, is a popular choice with smaller companies, who are happy to take residual value risks and spend the additional time managing the purchase, sale and maintenance of their fleet. The largest wholesale vehicle discounts are available with contract hire and finance lease packages, though we are also able to source and supply competitive terms should you be looking to arrange the outright purchase of any vehicle(s).
A mini-lease offers the same flexibility as daily rental, but over a slightly longer term. Minimum rental periods are 1 month and payments are fully inclusive of all maintenance and associated costs. Commonly used to cover seasonal peaks in demand, and for new starters in probationary periods. We have highly competitive rates available, please enquire.