Agnew Corporate Contract Hire

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Contract Hire

Contract Hire is fast becoming a most popular method of funding fleet cars throughout the business community.

What is Contract Hire?

Under Contract Hire, vehicles continue to be owned by Agnew Corporate yet are hired to you for a set period of time and at a fixed monthly rate. This method of finance can be useful for companies wanting to free up credit lines or improve cash flow by implementing fixed cost fleet operation.

How does Contract Hire work?

The monthly rental charged is calculated based upon the cost of the vehicle, the contract period and the anticipated resale value. It is also takes into consideration the predicted mileage, service and maintenance costs, together with any additional services such as relief vehicles.

Under a Contract Hire agreement Agnew Corporate retains ownership of the vehicle at all times and therefore continues to absorb the subsequent risks such as unforeseen running costs and uncertain resale values.

The facility provides customers with a single monthly outlay which can include full maintenance/service costs, replacement tyres, road fund licence and if major repair an alternative vehicle will be made available.

At the end of the contract period we will arrange to dispose of the vehicle therefore removing the problems of resale and depreciation risk.

Key Benefits

Fixed monthly rental therefore improving cash flow
Release of capital
Vehicles under Contract Hire are not recorded as assets on the balance sheet, thus improving company gearing ratios
Low initial outlay
Smooths Cash Flow
Removes Risks of High Depreciation
Protects you from Escalating Maintenance costs
No Asset Sourcing / Disposal or Resale Hassle/Concerns
VAT on rental recoverable, subject to 50% block for private use
VAT on services element of rental 100% recoverable by lessee
Rentals paid on vehicles under £12,000 are fully deductable against corporation tax, however, for higher priced vehicles only a proportion of the payments can be offset.
Utilises the Agnew Purchasing Power

What we can offer >

We take away the day to day hassles of running a car fleet. Our administration department is responsible for processing maintenance invoices and vehicle purchase and disposal invoices. We also take care of road tax renewals, MoT renewals, traffic offences, safety recalls, foreign travel requests and a host of other activities. As a result, your paperwork is reduced, you save time and overhead costs and you are able to devote much more time to your business.

We have superb levels of client retention, perhaps the best of any leasing company in the country. We are flexible and accommodating, if there's a problem, we'll work with you to try and fix it. We try and keep things simple, and our clients seem to appreciate our approach.

You can talk to us. We believe in a personal hands-on service. Call us, and we'll answer the phone.

For a full breakdown of Contract Hire, or for a quotation, please contact us here.