A consumer’s guide to contract hire
It seems that the hiring of vehicles, as opposed to outright purchase, continues to grow in popularity, with more and more consumers and companies choosing this as an option to meet their transportation needs on a daily basis. However, for the consumer that’s new to contract hire, there are plenty of factors that can lead to confusion, so in this guide we explain what contract hire is, why people choose it as an option and what you can do to get the best contract hire deal.
The benefits of contract hire
Avoiding depreciation can certainly seem like an attractive option, particularly when it’s wellknown that even driving a new car or van off the forecourt can see it lose 10% of its value immediately. Choosing contract hire means that, as you only ever hire the vehicle, you needn’t worry about losing significant amounts of money through the years. You may also have the option, at the end of your contract, to purchase the vehicle outright in any case. While car leasing is paying the total cost of the car for a set time, the contract hire is giving you the opportunity to pay for using a new car for a certain period, paying the negotiated amount monthly.
Enjoying fully maintained vehicles
There’s a lot to be said for having a vehicle that is guaranteed against major problems, and the majority of contract hire deals will cover certain mechanical mishaps.
Avoiding the need to find a buyer when you want to change your vehicle
Finding a buyer and negotiating a deal on your old vehicle can be nothing short of a nightmare. From paying to advertise to having to meet people who you’re not sure are genuine; these issues, amongst others mean that there could be significant delays in you selling your vehicle.
Finding the best contract hire deal
Comparing deals on comparison websites
Whilst the majority of comparison engines focus on insurances, leasing and other similar products there are a few specialist websites that compare the latest contract hire deals, so checking these websites should form the first part of your search.
Calling providers directly
Calling contract hire providers directly is essential if you’re to have a full ideal of what the company is offering; if you’re a corporate customer looking for a number of vehicles then you may also be able to negotiate with the provider for a better deal.
Checking the fine print
Ensuring you know all there is to know about the contract hire deal you’re taking out is essential if you’re to receive the deal that you think you are. In particular you should check whether there are any financial penalties for damaging the vehicle and what may be covered if the vehicle malfunctions. Lastly you should check whether your contract hire offers you the option of extending the contract at a reduced rate, or purchasing the vehicle at a discounted price, at the end of the term.