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Services Supplied by Lease Hire

American Government Special Collections Reference Desk

Services Supplied by Lease Hire

John Eva
May 23, 2006

Whether you are looking to rent a car or finance a lease, Lease Hire brings provides individuals and companies with a one stop solution to all their vehicle fleet needs.

Contract Hire Through Contract Hire, a fleet of vehicles is given to you for a set period of time. Although the vehicles are still owned by the leasing company, you are able to use the vehicles for the set monthly rate. The monthly rate is determined on an individual basis, and takes into account factors such as the time period, mileage, and maintenance costs, along with several other factors. Contract hire is a good option for anyone that is looking to implement a fixed cost for their vehicle fleet.

Personal Contract Hire is also an available option. This is similar to Contract Hire, but allows individual employees to take ownership of the vehicles, while still benefiting from buying the vehicles as a group.

Contract Purchase Contract Purchase allows vehicles to be purchased over a set amount of time. It is very similar to standard vehicle ownership, but it allows the vehicle to be purchased without the risk of depreciation. A monthly payment is made on the vehicle, which is determined by the cost of the car, anticipated depreciation and mileage, and maintenance needs.

Personal Contract Purchase is also an available option. This is similar to Contract Purchase, but allows a company's employees to take ownership over their cars. The employer is able to pay their employees a monthly allowance based on the employee's level and car.

Daily Rentals Contracts periods for Daily Rentals may extend to a maximum of twelve months. This option is normally desired for companies that have staff members that need a vehicle but may not be with the company for an extended period of time. This is also a good option for companies that have normal fluctuations in their need for vehicles.

Finance Lease A Finance Lease provides a tax efficient option for leasing a vehicle. With a Finance Lease, the entire cost of the vehicle can be paid in one of two ways:

1) The entire cost of the vehicle can be paid over an agreed lease period, with an interest charge being applied to each monthly payment.

2) A lower monthly fee can be paid, with a final payment made which is based on the anticipated resale value of the vehicle. Lease Purchase A Lease Purchase is the most common method that companies use to finance a vehicle. The monthly payment is determined by the total cost of the vehicle, the period of the Lease Purchase, and the estimated future value of the vehicle at the end of the Lease Purchase period. A total mileage amount is also set for the term of the Lease Purchase, which, if exceeded, will result in a fee being assessed to each mile over the original total.

Sale and Leaseback Similar to a Lease Purchase, a Sale and Leaseback applies to a vehicle that you currently own. This option can be used to free capital that is tied up in the vehicle. In a Sale and Leaseback option, the vehicle is bought and then leased back to the original owner. The monthly payment is determined by the same factors as addressed above. This option only takes place on paper, so use of the vehicle is not interrupted at all.

Written on behalf of Total Fleet Contract Hire UK

BMW Contract Hire - Vehicle Leasing

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