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Contract Hire or Finance Leasing
Contract Hire
Contract Hire with Maintenance
This is our most popular type of lease by some way and is the choice of customers who regard leasing as a means of maintaining costs at a known level for the purpose of budgetary control. With Contract Hire, the risks of owning and maintaining the vehicle rest with WVL, so if used vehicle values fall heavily or the vehicle requires above average maintenance (or both!), we have the problem, not the customer. The comfort level can be further improved by taking up one of several replacement vehicle options.
Contract Hire without Maintenance
By accepting the risk on maintenance, careful drivers can benefit from the lower level of rental, but it is an important condition on this type of lease that the vehicle is properly maintained during its term - at the customer’s expense.
Type of lease
In essence, there are two main categories, Contract Hire and Finance Leasing. Contract Hire is designed to achieve cost stability by removing much of the risk of car ownership. Finance Leasing provides a flexible and easy method of funding. The choice is usually determined by the customer attitude to risk and more information can be found by using the links above.
Finance Leasing
A sensibly structured Finance Lease will provide a simple, flexible and effective source of funding for customers who do not wish to tie up working capital in vehicle ownership. A lower rental results from the fact that the customer is prepared to take responsibility for both maintenance and an agreed end of lease value for the vehicle.
Accounting Requirements
It should be borne in mind that, unlike Contract Hire, vehicles on Finance Lease must be reflected in the balance sheet, possibly having a material effect on the financial gearing of the business.
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