Car Hire Contract
A car hire contract is a term used for hiring cars on contract for fixed rental schemes with low initial payments. It is indeed a very competent and professional method of financially supporting business vehicles. Rentals for car hire contracts include road tax for the period of the contract. All vehicles are offered a three-year warranty by the manufacturers. Rentals may counterbalance against taxable profits. Money invested in buying company vehicles is not advisable as nowadays cars can be easily hired for contract. Money determined to be spent on purchasing vehicles for the company can be used to develop business. This investment in business will yield good profit ratios.
Driving cars for a fixed amount each month reduces the burden of maintaining it for lifetime. Contract hire cars are out of the balance sheet, so there is no risk of losing money on your company vehicles. Paper work for hiring these cars is also done by post or fax. The advantages of car hire contract are that payments are low, and a fund license is included with the period of contract with full maintenance packages included for an extra fee.
Contract hire is a funding method specially made for maximum benefit for VAT registered customers. Car hire contracts provide a duration of 12 to 60 months for pre registered vehicles and 18 to 60 months for new brand vehicles. Mileage allowance is given for 160,000 miles. The customer is responsible to bear the insurance of the vehicle. Full maintenance costs if included in car hire contracts, then maintenance as well as servicing charges and the supplier maintains wear and tear of the vehicle.
Termination charges have to be borne by the customer if he wishes to end the contract early. Generally, 50% of the balance monthly rentals are payable as termination charges. Other charges will be charged in case of damage and it is not repaired.
Contracts provides detailed information on Contracts, Business Contracts, Legal Contracts, Employment Contracts and more. Contracts is affiliated with Divorce Legal Forms.
