The benefits of contract hire
Vehicles are critical to your operation; without them, your business could not function. But should you purchase them outright or consider leasing them?
For many businesses, there is time and money to be saved with Contract Hire.
No big capital outlay
Vehicles are expensive assets, meaning a big outlay of capital will be required to purchase them. When you can get them for smaller monthly fees and spread the cost over a number of years, we believe that is money that could be better spent on other activities that can help grow your business now.
Stability
New vehicles depreciate, some more than others, and you will never know when a vehicle will break down or be involved in an accident. This takes time to track and makes budgeting difficult.
But that does not need to be your problem with a lease, as depreciation becomes something for us to take care of. And, with servicing, maintenance and repair included in your monthly payment, you will know what you will be paying every month, making budgeting easier. Pendragon have a nationwide servicing network that touches more vehicles every year than any other provider, which makes us great on price too.
Save time
It is not just money you will save with a lease – it is your time, too.
We will look after drivers in the event of an accident or breakdown and work to get your vehicles up and running again as quickly as possible. This means you can get on with the business critical activities that matter.
Keeping up with appearances
All vehicles will age, but with lease vehicles you can replace them with the latest model every few years, keeping your brand image at the cutting edge.
Go green
Similarly, you can swap your vehicles with a cleaner, more fuel-efficient model every time you need to replace them. This will help reduce your carbon footprint, your fuel bill and enhance your green credentials.
Perk cars
Who does not love the smell of a new car? A benefits package that includes a car can help attract the best people, and reward hard work. Lease the latest make and model, then swap it in a few years to make sure your drivers are using the latest vehicles with the best in-vehicle safety tech.
Already purchased your vehicles?
You can get a large injection of cash into your business by selling your vehicles and having them leased back to you. You will then get all the benefits of leasing, including the maintenance, service, and repair packages we offer; plus you can exchange your vehicles for new ones at the end of contract, just as if you had started with a lease.
In Summary
While there will be situations where it makes the most sense to own your fleet vehicles, the benefits of leasing are pretty straight forward: cost-effective, time-effective, green, keeps drivers happy, and can help your business grow.
When you factor in purchase costs, tax, time, maintenance, fuel, and depreciation, the whole life cost of a managed leased vehicle fleet can be a lot cheaper than if you outright purchase your vehicles and manage them yourself.
