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As the development of electric vehicle fleets and wireless charged public transport proves, the times are changing at a rapid and unpredictable pace. While this may have at least some impact on the commercial fleet industry, however, there are some aspects of the sector that remain refreshingly unchanged. Take the popularity of contract hire vehicle solutions, for example, which is firmly established as the single most cost-effective fleet management tool on the commercial market and commonplace in businesses nationwide.

Contract Hire for your Business: Its Benefits in the Modern-age

With this in mind, it is fair to surmise that contract hire is often the first port of call for business-owners when they appraise their commercial fleet management options. But what exactly are the fundamental aspects of contract hire and why do they appeal to contemporary businesses? Consider the following: -

  • No Monthly Costs and Tax Breaks: When addressing contract hire, it is hard to do so without considering the financial benefits that it can deliver to your business. Not only does it eliminate monthly costs such as lease and purchase hire fees, but it can also offer tax breaks of between 50% and 100% to your business. If you use your commercial vehicles solely for business purposes, for example, you will be eligible for a 100% break in VAT payments over time.
  • Low Initial Outlay and Investment Required: Government's throughout the Western world have been keen in recent years to reduce the cost of business start-ups, and contract hire agreements are often a key component of this drive. Essentially, this type of commercial vehicle solution requires little or no up-front investment, while forward thinking providers such as Hitachi Capital Vehicle Solutions tend to offer additional financial incentives to motivated business-owners.
  • Eliminate the Financial Burden of Ownership: When you invest in vehicles through a hire-purchase agreement, you are assuming responsibility for their financial up-keep. This relates to both planned and unscheduled maintenance, which over time can account for a substantial sum of money. Contract hire agreements eliminate the financial burden of ownership, however, as they is absolutely no residual value risk associated with operating vehicles under its terms. So rather than eventually attempting to sell the vehicle for a loss, you can simply replace the car with a new model when it is damaged or in need of a repair.

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