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For the companies which must deliver services to clients, vehicles are obviously essential. For some companies though, the high start up costs can make it hard to do that one off investment. This is why contract hire companies that allow renting vehicles can be such a better option. You can find out what the advantages of the business are.

Fair enough, buying a vehicle can be considered unwise especially if its value is predicted to dramatically decline in the upcoming months or few years. Once the value of their capital has been depreciated, the purchaser may feel some regret. You know that with car/van rental, you will have a flat rate per month, which for the first few months, can be paid in installments.

The price to be paid would be based on three reasonable factors. First is the value of the vehicle upon its purchase; second is the mileage specified for the client’s consumption; last is the estimated residual value when the terms and conditions expire. This is a very positive thing since clients need not worry about how much their automobiles will be worth after they take advantage of it. Of course they have to make sure they don’t drive too far, or damage the vehicle during the time they have it, and in this case the car leasing company takes care of everything else.

Not only is money involved in the purchasing but also in the maintaining of the automobiles. This can be financially taxing as well. However, with vehicle rental, clients are spared from this worry if they choose the full maintenance agreement. The car leasing companies would take care of all things.

Plus, there is a good opportunity to show customer service skills by the companies if they offer to deliver or collect the actual vehicle. Plus, it doesn’t matter if the client is far away from the leaser. Usually the staff are guaranteed to be profession and effecient in handling their transactions.

Clients will also get a big part of what they paid for VAT free due to using a rental firm for public use. These companies get a 50% reduction on VAT, if they are using the truck for just public use, then they get a total refund on value added tax. So this is a lot better than the 0% reduction of full purchases.

Typically as the records are known to be off the balance sheets, leasing companies can extract more income from their business on grounds that they have a smaller amount of declared investments + assets. Plus it is easier for them to accept cash and expand credit lines.

Businesses can open up loads of options for their clients, once the contract has expired. They can either let them choose to extend the agreement for a discounted price, renew and choose another set of vehicles, or also ask for an actual price so they can actually buy the vehicles. With all the alternatives on offer, it will guarantee success for both leasing and client companies.

If you would like to get some extra information on contract hire, then visit the Car Leasing UK website

As if the recession wasn’t depressing enough for students graduating from university in last few years; many petrol heads will be coming to slow realization that the performance car they thought they’d have after they donned their graduation gowns and stepped into a 30k + is just not materializing, this will be genuinely demoralizing for some who have gone through university just to get a good job in order to be able to afford such things as a fast luxurious car.

Young graduate job hunters will have little hope of being able to outlay the huge amount of money required to purchase anything near desirable. I may just have the answer however. car lease. This is a payment plan for cars whereby users are not obliged to shell out for the entire car but can in effect, rent it for a prearranged period of time.

This is good news for those who are desperate to break free of the sluggishly accelerating shackles of their 1990 Nissan Bluebird that they inherited from their mother, can do so without the fear of a massive financial commitment. Leasing can take place through a company that specialise in leasing certain types of cars or through a dealership that only sell sell one marque.

This means that if an individual wanted to look into BMW contract hire they would be able to look around for the best price at BMW dealerships and leasing specialists. This finally solves the headache for keen graduate petrol heads who want to get behind the wheel of something special. They just need to keep in mind that when the lease period is over they will need to find the money to pay for the rest of the car, or get a new car.

Measures such as the VAT increase to 20% as of next year are going to have a huge impact on everybusiness but will be especially damaging to the motor trade.Cars are usually the second most expensive purchase (after buying a house or flat) that a typical consumer makes.  A car priced at £12,000 for example currently attracts £2,100 VAT.Another £300 will be added to that as from January 2011.  Factor in a rise in Insurance Premium Tax (IPT) to 6% in January  which will increase the cost of warranties and motor insurance and bundle with increases in fuel costs and it’s no wonder that many motorists  and fleet owners  are  reviewing the best way to keep on the road!

Although it might not suit every driver, car leasing may be the answer to keeping motoring costs down.   At the end of the day, no matter how luxurious the marque, any car will depreciate.The best advice in these circumstances comes from billionaire Paul Getty who said: “If it appreciates, buy it. If it depreciates, lease it.”  There are no huge up-front costs, capital outlay or car loans required at the outset with contract hire.  Most contract hire providers ask for a down payment equivalent to three of the proposed monthly instalments, which is usually much less than the typical deposit needed to buy a car.

Those monthly payments on something like BMW car leasing are also typically lower than repayments on a car loan because you are not paying for the entire cost of the car, just for the use of it over the term (usually 36 months) of the contract hire agreement.  Above all though, leasing means that you can drive your dream!  Audi contract hire is high on the list of preferences for drivers who lust after something like the Audi A8 or Audi Q5 that would be beyond their budget if they attempted to purchase outright.  Indeed, given residual values, it makes sense to go for the more prestigious makes for contract hire.

More people, especially urban and city-based drivers, are coming round to the idea that electric cars aren’t just poncy eco wagons designed for attention-seeking celebs and tree-hugging hippies. Electric vehicles can save you money as well as the planet.  Up until now, if you wanted to go green and all electric, you ran the risk of ridicule and injury in something like the G-Wizz or only going half way there in an electric car that isn’t exclusively an electric car like the Toyota Prius hybrid.

There’s no doubt that the specification of these Electric Vehicles (EV’s) is getting better all the time.  Ranges are steadily being extended and their performance is getting closer to regular cars.  Contract Hire will likely remain the preferred method of acquiring these vehicles for some time yet as the various technologies sort themselves out and retail prices remain relatively high (£30,000 is suggested for a Plug in Prius for example).

The advanced all electric Audi A1 e-tron hatchback may well be a viable candidate for Audi contract hire once 20 of them finish testing in Munich by mid-2011.  With a top speed of 81 mph and the equivalent ‘fuel economy’ using a range extender (a small Wankel engine to give a charge boost) of 148.7 mpg, they should go some way to delivering a genuine “car like” performance.

BMW contract hire s also a more judicious route for models like the Mini-E (an electric Mini) that can seat only two thanks to a huge battery pack.More practical for everyday driving may be the ActiveE, a converted BMW series 1 coupe, in which you get four full-size seats and a decent boot to boot!.  The electric motor, specially developed for the model, accelerates the car from 0-60 mph in around 8.5 seconds.   An advanced lithium-ion battery pack enables a range of 100 miles in everyday use and can be fully re-charged in just three hours using a regular 13 amp wall socket.

A contract hire agreement is a contractual agreement made on the basis of leasing a vehicle to, most commonly, a business but also, less commonly, an individual. The contract hire agreement can last for between one and five years and is frequently used by businesses as part of the salary given to its employees. An employee is generally given a set amount of expenditure for a contract hire agreement that they can use to choose which vehicle they would like for the purpose of business travel.

A contract hire agreement can be extremely beneficial to individuals and companies for a number of reasons, though it is important to note that there is almost always a set mileage limit for the distance covered in the vehicle. If the limit is breeched then there will certainly be extra costs incurred on completion of the agreement.

Contract hire agreements for businesses are usually setup for employees of the business to hire a vehicle as part of their salary. Personal contract hire agreements are becoming less common in recent years due to the major leasing companies dropping out of the market in order to focus on the business market.

The predominant cost that the lessee will have to cover in monthly premiums will be the vehicles depreciation rate. On top of the depreciation rate of the vehicle, the monthly premium will also be accountable to the length of the contract, the expected mileage that the vehicle will cover over the course of the term and also any extra services such as maintenance agreements that have been agreed upon in the contract.

During the period and after the end of the contract hire agreement, the leasing company retains ownership of the vehicle; however, in some circumstances, the vehicle user is able to purchase the vehicle from the leasing company after the end of the contract.

When a contract hire agreement is set up, it is also common for companies to make use of a maintenance agreement in which the lessor will be liable for any costs involved in general vehicle maintenance. This maintenance agreement can cover a variety of costs depending on what has been agreed on at the start of the contract. Generally, though, a maintenance agreement will cover general wear and tear including tyre wear and other consumables. An additional service of breakdown recovery could also be chosen.

It is possible for VAT registered businesses to recover 50% of the VAT paid on the vehicle. Other benefits include reduced administration, fixed interest rates, very low capital expenditure and absolutely no depreciation costs to account for.

There are very little drawbacks to a contract hire agreement; though, obviously, it will cost more in total if you are considering purchasing the vehicle at the end of the contract. For individuals, due to the recent economic downturn, it has been an increasingly more popular way of having your own transportation, especially if you enjoy having a new car every few years!

Car leasing and contract hire are efficient ways of getting behind the wheel of some of the latest motors..the “standard” contract hire quote usually requires the equivalent of three payments in advance followed by 35 monthly instalments based on 10,000 miles per annum.  The total amount you pay over that term is calculated on the basis of the vehicle’s residual value.In very simple terms, the total contract hire cost you pay is the difference between the purchase price of the car when new and whatever the contract hire company thinks it will be worth when sold on after three years.

That’s why it makes no sense to use car leasing for low residual value auto brands like Daihatsu, Proton and the like that depreciate rapidly.  Contrcat hire makes more sense for prestige marques or popular models that are desirable and hold their “used car” values well.  Firm fleet and lease favourites include prestige or up-market models such as the Audi A4, the Mercedes C-Class, BMW  5 and 6 Series and the Range Rover Sport for that very reason.

Audi contract hire on a range of models has remained the top preference for contract hire cars in the UK for many years.  The Audi TT coupe has joined that elite group, becoming one of the first coupes to top the searches for contract hire on the Internet.  Ever since the first Audi TT models appeared on the roads over 10 years ago, it has been an incredibly popular car.  The introduction of the RS edition seems to have whipped the leasing market for it into a frenzy.

Coming up fast behind Audi though is BMW contract hire as a search term. The BMW 3 Series Coupe gives the TT more than a run for its money and a revised version of the BMW X3, expected late 2010, is sure to prove popular for leasing or contract hire.Featuring a raft of improvements over the out going model, the new BMW X3 will feature auto start/stop functionality on an automatic 8-speed gear box.

Driving an electric car will earn you some green brownie points but can also deliver some real cost savings as well as salving your eco-conscience.  Electric vehicles are exempt from road tax and London’s congestion charge and are free to park in many areas of the capital city.They also have low insurance costs, zero petrol or diesel costs (natch!) and can be topped up overnight for mere pennies.

Many cars are conversions from regular saloons, while some like the Nissan Leaf have been designed from the start as an Electric Vehicle (EV).Until the best electric technology establishes itself, it’s probably wiser to look at contract hire rather than purchasing outright.   The most popular electric car that isn’t exclusively an electric car is the Toyota Prius plug-in hybrid. The plug-in Prius won’t be available in showrooms until al least 2012 and the price is likely to be in the region of £30,000. The combination of petrol engine and electric motor delivers a solid “regular car” performance.  Range in electric-only mode is a mere 12.5 miles though, which is barely enough to get most of us to work and back, so you’ll have to fall back on the petrol engine more often than you may like.

BMW car leasing in the electric arena will be best served by the all new Mini E, which promises the best performance of any car of this type.  A 155-mile range is possible under ideal conditions, and a 104-mile range under ‘normal’ conditions is equally feasible.  When it’s released, the Mini E will probably be one of the very best genuinely all-electric cars on the market.Granted, it would be handy to carry more than one passenger (there’s a huge battery pack you see) but everything else about it looks spot on.If you want to wait for a more roomy German motor that will still save the planet, try Audi car leasing on the all new Audi A1 e-tron.20 road-ready Audi A1 e-trons will be tested in the streets of Munich from mid 2011 as part of a pilot project undertaken by Audi AG backed by the German government

Driving an electric car in London could make you savings of over £4,500 a year. That’s enough cash to buy a decent, low mileage Ford Fiesta or a Fiat Panda.  More people are realising though that electric cars aren’t gutless eco wagons fuelled by falafel munching hippies Electric cars are exempt from road tax and the London congestion charge, enjoy free parking in many areas, have low insurance costs and of course absolutely no petrol or diesel costs, so they might be worth looking at after all!

Until the technology settles down though, you might be best advised looking at car leasing for an electric vehicle rather than parting with your hard earned cash to buy outright.You don’t have to go horribly down market either to go electric.  Some leading luxury marques are plugging into the electric bandwagon.  Audi car leasing on something like the all-electric Audi A1 premium compact hatchback may be a better bet for the time being.  20 of these beasts will be on trial in Munich by mid 2011 supported by 200 ‘electric filling stations’.Capable of a top speed of 81 mph thanks to a hefty under floor lithium-ion battery pack, the electric A1 Audi also uses a small rotary petrol engine as a “range extender” to produce an extra 15 kW of charging power. Audi figure that will deliver ‘fuel economy’ equivalent to 148.7 mpg.

BMW too has ripped the petrol-guzzling heart from one of its most iconic marques, replaced it with batteries and an electric motor and called it the Mini E. Prices for final retail models remain unconfirmed, so BMW car leasing may be the more judicious approach here too for the time being.The Mini E manages to deliver an impressive performance (thanks to an enormous battery pack) with a top speed of 95 mph and a whopping 155-mile range, but with space for only one passenger. The Mini E is unavailable at the moment, but Mini regularly runs field trials, with a second trial pencilled in from September 2010, so watch this space!

I hear a lot of people talking about cars that in all honesty, don’t have a clue what they’re on about. I too often witness crowds of lads congregating to wax lyrical about their engine power, they talk about horsepower, top speed, the amount of pistons, the material the camshaft is made out of and how much torque they have. At this point one of the members of the group pipes up, what’s torque? Unsurprisingly no one can answer.

I’m not trying to demonize youngsters for being enthusiastic about their cars like their contract hire Ford Fiesta, I think having an interest and a hobby is much more productive that hanging around the streets taking drugs and mugging old ladies. It just grates on me a little when people talk about things they have absolutely no idea about.

I am going to attempt to explain exactly what toque is and what it means to the performance of a car. The amount of torque an engine produces is defined by pounds of force per foot, or lb/ft, this imperial measurement is hard for us to relate to, but then so its MPH, we only understand MPH so well because we have been conditioned to.

Torque is about the amount of power a car has at the lower point of its power band. You can have fast cars with very little torque and slow cars with lots of torque, and vice versa. A tractor or a 4×4 like the Porsche Cayenne for example is a very slow lumbering vehicle but it has lots of torque for propelling it up steep hills.

Conversely you may have a racing car specially tuned to go as fast as possible on a track that has a very low torque figure, cars with low amounts or torque can be just as quick as those with they just need to be driven more intelligently, keeping the revs high through changes as this is where the engine reaches peak power.

Many businesses have found it positive to lease their vehicles. There are four main options for both car and van leasing. The first vehicle leasing option is contract hire, whereby a monthly fee is paid to the lease company, which covers the depreciation value of the vehicle for the lease period, together with a small mark up. At the finish of the contract, the vehicle is returned to the lease company. Since mileage can affect the depreciation value of a vehicle, fiscal penalties will be charged if mileage restrictions are exceeded. The second leasing option – contract purchase – resembles contract hire, but with the option to procure the vehicle at the end of the car or van leasing contract period.

With a third option, finance lease, the full cost of the vehicle is paid, although the vehicle is not actually kept. The business will either pay the entire cost through monthly payments (plus mark up), in which case the vehicle is sold or used as part-exchange for a new lease. Or, following low contract hire-level monthly payments, the proceeds of the sale will be expected to make up the balance owed to the lease company. For this reason, contract hire-type mileage limitations may well be obligatory. Finally, lease purchase is an option that requires the business to commit to buying the vehicle at the end of the contract period, for a pre-agreed price. Since the business is taking the risk of ownership and depreciation, there are no mileage or wear and tear restrictions.

It is often said that those running a household and its budget can learn a lot by looking at the way in which a thriving business operates. Nowhere is this more true than when examining how many businesses have adopted vehicle leasing as their favoured method of vehicle procurement. Vehicle leasing has the advantage of equipping a business with its choice of the latest makes and models of cars, or vans, at monthly rates, which work out far cheaper than the equivalent cost of securing vehicle purchase finance.

Businesses have the option of taking out leases that permit them to eventually buy the vehicles in question. Many, however, choose to opt for contract hire. The vehicles are simply collected by the lease company at the end of the hire term, with no qualms about depreciation, or indeed without any obligation of any kind on the part of the business. The good news is that the same large, reputable lease companies that deal with top businesses can also offer similarly economically advantageous deals to private car users. Contract hire for private individuals, known as ‘personal contract hire’ or ‘PCH’, works in just the same way as contract hire for business: by offering a cheap, consistent monthly payment, over an average hire period of three years, in return for exclusive access to a brand new car of the customer’s choice.