DFC Belfast 25 Year Anniversary

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DFC Belfast 25 Year Anniversary

028 9073 4222 facebook twitter

Business Contract Hire - The Most Popular Method Of Funding Company Vehicles

It involves the hire of a vehicle from us for a pre determined period, usually between 12-60 months at a fixed monthly rate and based on annual mileage. At the end of the agreement you just return the vehicle to us. A full maintenance package can also be included in the monthly cost of the vehicle.

Below are some of the benefits when using contract hire for the funding of your company vehicles. 

Release Capital - If you are currently purchasing your vehicles through your own funding, you are inadvertently tying up a valuable proportion of your company’s financial resources. Contract Hire releases these funds for more profitable use.

Accurate Budgeting - With Contract Hire, all costs are calculated and built into a fixed monthly payment. All maintenance costs including routine servicing, tyres, MOT/PSV and Road Fund License are included in the monthly payment. Vehicle costs can be forecast accurately for up to five years. Paperwork is almost eliminated and budgets tightly controlled. 

Tackles Depreciation - With our buying power, we can purchase vehicles at cheaper rates. Efficient vehicle disposal always enables us to accurately assess resale values. Only the minimum depreciation is passed on to our customers, resulting in great rentals.

Improves Cash Flow - Contract Hire is classed as an operating lease, which means that the vehicles do not show as depreciating items on your balance sheet. Rentals are classed as a revenue expense and are shown in the profit and loss account.

Freedom of Choice - We can supply all makes of cars and vans at competitive Contract Hire rates. You choose the model, colour, specification and accessories to suit you. We then offer expert and unbiased advice on all makes and models so you get the right car for your budget and needs.

Enhances Company Image - With Contract Hire you will always have modern and presentable vehicles. Contract Hire will also give you a disciplined replacement program. Remember, your competitors may already be enjoying these benefits!

Reduces Administration - Are your management and staff currently weighed down with time consuming vehicle administration? Contract Hire releases them from this burden. Contract Hire significantly reduces paperwork. Road fund licence is renewed automatically.

VAT Benefits - Contract Hire has many VAT benefits. Our Finance Houses can reclaim the VAT on the purchase price of the vehicle and pass on these benefits to our customers. Also, once the vehicle is on the road, you can claim back 50% of the VAT on the finance element (if the vehicle is available for personal use or 100% if only available for business use) and 100% of the VAT on the maintenance element of the rental payments.

Mileage & Maintenance Reviews – we can provide annual mileage reviews as part of our service to you. This enables us to identify if any of your vehicles are over or under contract mileage. We can then advise you whether it is possible to recontract mileages prior to the end of the contract. This minimises any excess mileage charges.

Peace of Mind - With monthly payments fixed over the entire contract period and a range of optional extras, Contract Hire takes away the worry and trouble of managing your company cars and vans.  

DFC are a credit broker not a lender

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