CONTRACT HIRE IN NORTHERN IRELAND

The Financial Picture

While Contract Hire has the obvious advantage of freeing up vital staff and resources for your business, it could also have important financial implications for your company.

Many companies choose to buy their own fleet outright, with companies making considerable investments in commercial vehicles.  This of course gives you the advantage of increasing your assets.  But investing in a fleet has serious disadvantages as well.  Although direct purchase increases the asset base, it is an asset that depreciates greatly, by around 20% in the first year alone, in fact.  The cost of maintenance could also be put to better use by most businesses.

With a Contract Hire arrangement, capital reserves can be maintained, and the costs of the fleet taken as a monthly operating cost on a planned basis, deductible for VAT and corporation tax purposes.  This also greatly assists in cash flow planning and management, allowing you to know your commitments in advance with no surprises in store.

Administration is made easy by the payment of a single invoice, either seperately for each of your cost centres, or consolidated for the entire fleet.

If you already own a fleet but would like to convert to Contract Hire, again we can provide a fresh injection of capital into your business by purchasing your vehicles from you.  We will then set you up on a Contract HIre arrangement with the vehicles that suit your current and projected needs, and then manage your commercial vehicle fleet for you.