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Contract Hire and Leasing Guide - Contract Hire with Maintenance

All Vehicle Contracts Contract Hire and Leasing Guide - Contract Hire with Maintenance
  • Contract Hire with Maintenance

    Fully maintained contract hire offers you and your company convenience and reassurance, knowing that you will not be faced with unexpected bills, and enabling you to budget company car maintenance costs with confidence and total control.

    Our aim is to find the right solution from our wide range of products and services and recommend that you compare both contract hire without maintenance and contract hire with full maintenance prior to signing. Contract hire agreements that include maintenance are constructed to cover all your motoring costs excluding fuel and insurance.

    Fixed cost motoring could be cheaper and more cost effective than you think. Fully maintained contract hire agreements are not just for fleets; they are also ideal for SMEs and individuals who want to fix their costs.

    Contract Hire with Maintenance includes

    • The cost of any additional servicing and maintenance (including replacement parts) required to keep the vehicle in good order and serviced to the manufacturer’s recommendations
    • Road fund licence for the contract period
    • Provide and pay for all tyres that require replacement due to fair wear and tear
    • Current MOT certificate (where applicable)

    Minimising risk on vehicle maintenance expenditure

    Contract hire companies are able to spread the scale of maintenance and tyre expenditure risk across thousands of vehicles, which in turn if you a choose contract hire with maintenance, that offers you fixed cost vehicle service and maintenance budgeting with no risk of unforeseen maintenance expenditure. Things like clutch replacement, battery or mechanical failure happen and sometimes they don’t, but if they do contracts with maintenance will cover these unforeseen costs.

    Minimising risk on vehicle contract return

    While the service intervals may vary between different car brands, there are common themes across all car makes and models that call for servicing by dashboard digital request . For example the most common maintenance checks are: 12 months or 10,000 miles for service A and 20,000 for service B which is a more in depth service and therfore more expensive.

    What can be overlooked is that if you have a non-maintained contract and there is a dashboard digital request, or service due prior to the end of contract you would be liable for the costs.  Your vehicles service manual lists the maintenance items to be performed at various mileage intervals, it is in your interest to take this into account to determine if a contract with maintenance may be more suitable for your requirements.

    Contract hire providers negotiate favourable labour rates and discounted terms on service items, tyres, parts and materials, based on their fleet size that often run into several thousand or more vehicles. This buying power results in lower vehicle fleet maintenance costs, with the savings reflected in the contract payments, as well as offering effective vehicle maintenance administration.

    How  Contract Hire with Maintenance can save you money

    Contract hire providers are more likely to achieve a profit on end of contract sale if the vehicle is complete with full service history, making maintained contracts a more attractive proposition than those of non-maintained contracts.

    To encourage maintained contact business, contract hire providers may often offer incentives such as reduced cost of funding or an increase in predicted future residual value of the car; both of these factors effectively lower the cost of the rental making a fully maintained contracts a more cost effective proposition in some instances.

    Always compare both contract hire with and without maintenance, as the saving may surprise you.

    What contract hire with maintenance services are subject to

    • You need to deliver the vehicle to the appropriate place for service, maintenance or tyre replacement as required by the contract hire company.

    Fixed Penalty Notices / Congestion Charges / Fines and Parking Charges

    You are responsible for how you drive and where you park your vehicle. The funder is the owner and registered keeper of the vehicle, if you commit an offence, they will be contacted by the issuing organisation (e.g. local authority, parking company, police force). Examples of these instances are fixed penalty notices, congestion charges, speeding offences, bus lane offences and any other such events. As a result administration charges for processing these events are applicable.

    What contract hire with maintenance services may be recharged

    • Accidental damage that is the responsibility of your insurance company
    • Damage caused as a result of negligence, misuse of the vehicle or that is not covered under the terms of your insurance policy
    • Puncture or tyre damage should such damage be excessive or if it occurs more frequently than expected
    • Increases in annual road fund licence over and above that may fall due during your contract period

    Contract hire with maintenance quotation guidance terms

    All Vehicle Contracts Ltd takes all responsible steps to ensure that all quotations including service and maintenance featured on or generated from this website are as accurate and up-to-date as possible.
    Due to our site containing a large amount of vehicle and maintenance data, and despite our best endeavours, some information may not be as up-to-date as we would like.

    Quotations are offered free of charge for non-commercial use and for guidance only. Confirmation of accuracy will be confirmed by requesting a formal written quotation or pre-contract order.

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