Frequently asked questions

We recognise that you may have further questions to ask us, so we've provided answers to those that we are most often asked.  If you have any questions that we have not covered, please feel free to contact us.

Can I use my local dealer?

We are happy for you to use your local dealer for all scheduled maintenance and repair. We purchase all vehicles from our agreed network of suppliers and liaise with them on your behalf to ensure you are getting the best value for your money. As we have the largest fleet of company cars across the UK, we can secure unrivalled buying power and discounts to ensure you get the best rates possible. 

The economies in using our own extensive list of dealerships are as follows:

  • best discounts and manufacturer bonuses
  • benefits we gain purchasing hundreds of cars through our dealers
  • commitment to after sales service
  • no cancellation fees
  • influencing power we have through our dealer network

I own my cars at the moment; what are the advantages of funding them through Contract Hire?

The advantages Contract Hire offers are:

  • fixed monthly costs
  • reduced risk in vehicle resale
  • VAT efficient
  • off balance sheet funding which means less tax
  • available with or without maintenance

We also provide a Sale and Leaseback programme where we will buy your vehicles from you, giving you a cash lump sum to put back into your business and then we will lease the same vehicles back to you. This offers you minimal disruption and allows you to inject the cash you have released from the vehicles back into your core business activities or to expand your business.

What does off balance sheet mean?

When you purchase a vehicle for say £16,000, this vehicle goes onto the balance sheet as an asset and you are then liable to pay corporation tax of 19% (SMEs) on this asset. If you Contract Hire to fund the same vehicle you could inject the cash you used to purchase that vehicle back into the business and then budget the Contract Hire cost monthly without being taxed on this. This will be an off balance sheet cost and enable better cash flow.

What happens if a company car driver leaves?

If an employee leaves your organisation, their vehicle can be reallocated to another driver. If there is currently no driver to reallocate to, we can store the vehicle on your behalf at our Cardiff storage facility, until such time it can be reallocated. Alternatively, we can arrange early settlement of the contract . Please contact us for further information.

What are the tax benefits?

A major benefit of using Contract Hire is a reduction in your corporation tax rates through a reduction in the taxable fixed assets that your business has. This is because there are less fixed assets in your business in order to be taxable on. Furthermore, all, or a percentage of, VAT can be claimed back dependant on the funding method chosen. Please click here to look at the tax advantages or contact us with your specific enquiry.

How flexible is Contract Hire?

With Contract Hire you are free to change the term and mileage of the contract as many times as you like up until the last 6 months of the contract. This enables you to examine those drivers that are running over or under mileage and then adjust the contracts accordingly to avoid any unexpected end of contract mileage costs. We can also organise a pooled mileage agreement for you in order to help offset under mileage vehicles against over mileage vehicles. With Contract Hire you are free to add or exclude maintenance as required.

How does Contract Hire save me money?

Using Contract Hire saves you money as well as providing you with more assurance. Please see below the many ways in which contract hire can save your  business money:

  • releases capital that can be used elsewhere in the business
  • reduces corporation tax
  • fixed monthly maintenance cost that eliminates unexpected repair costs
  • reduced VAT payments
  • you benefit from the unrivalled manufacturer bonuses and dealer discounts we are able to negotiate
  • no risk in relation to reduced residual values

Do I have to go to a special garage to have my vehicles serviced?

We are happy for you to use a local garage, so long as they pass our quality standards.  We will liaise with them on your behalf. Why not take advantage of our ServiceTrak product which allows you to book a service online, by telephone, fax or email. We can take the administrative burden away from you so you can focus on other tasks. Contact us for more information.

Can I get my branding on my vehicle?

Yes you can. Part of the service we offer is to provide you with a facility to add vehicle branding/sign writing and remove this at the end of the contract. We have access to a wide network of reputable companies that can do this for you. All you need to do is contact us and we can do the rest. Alternatively, we can work with you and your existing suppliers.

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