Features & Benefits

Fixed Monthly Costs - Contract hire is a fixed-cost form of motoring. For a set monthly payment, you get the use of a vehicle for an agreed duration and mileage that suits your business. Then, at the end of the contract, you just return the vehicle to the leasing company. For an extra monthly fee, you can ask your contract hire company to take care of nearly every hassle associated with car ownership, whether it is maintenance, servicing or replacement vehicles.

The biggest benefit to contract hire is the cash that becomes available for your business. Leasing a vehicle instead of purchasing it means you are not tying up capital in a non-productive asset. A significantly smaller upfront investment is required when you decide to use VW for your fleet requirements, thus reducing fleet costs to a monthly operating expense and increasing cash liquidity for your business.

No risk – Contract hire protects you from the loss of value associated with aging vehicle stock. In a contract hire deal, you return it to the leasing company at the end of the contract period, and they take the residual value risk. If you include things like maintenance and servicing, you are also protected from any unseen rise in these costs.

Off balance sheet funding - Vehicle leases do not have to be shown on a balance sheet, which will improve a company's liquidity ratio, gearing and return on assets.

Future value – Payments take into account the vehicles future residual value, so the user doesn't have to repay the entire capital cost.

Less administration - Companies that own their fleet are responsible for a variety of administrative duties, which can create an unwanted management burden. The account holder must deal with everything from taxes, tolls and fines to license renewals. When leasing a fleet, the leasing provider typically handles a variety of fleet management tasks, including paperwork and record keeping, leaving you to concentrate on the day to day tasks associated with running your business

Boost your company image - A less tangible, but still significant benefit to contract hire is the ability to keep a more modern, reliable, and better-looking fleet on the road. It can sometimes be overlooked that a company’s fleet is a representation of the company itself and a fleet consisting of vehicles of varying quality, age, and looks can sometimes send a mixed message. With the modern, dynamic and stylish Volkswagen fleet, drivers benefit from updated technologies, improved safety features, and better fuel economy from our latest BlueMotion technology.