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Why Use Audi Contract Hire

by baxter owens

"Why own a depreciating asset"? That's the crux of using Contract Hire, both for personal and business use. A business user should also talk to their accountant, who will advise the benefits of accurate monthly budgeting, off balance sheet financing, improved cash flow, VAT recoverability (partial if used for private use) and of course tax allowance.

When choosing the car, look at the Marques that are known to have strong residual values on which the rentals will be based, (like Audi). Use the Internet to search for reviews and product information. The more time spent on research, the more satisfied you will be with your choice. Remember, you're going to be driving this car for up to three years, not just a few days.

Once you have made a selection, contact a number of suppliers to get a rough idea of monthly budget. At this point it doesn't need to be anymore than a guide price. (Remember the rentals are plus VAT). If the car you would like proves to be too expensive over two years try three, avoid any longer. You can of course add a monthly maintenance payment, but this will assume replacements in its costing.

You now know the car is likely to be affordable and you will be happy to use it for a few years. Now you need to get the exact rentals from a number of suppliers, making sure you get a copy of the terms and conditions. This is important, however most people fail to do this and the "devil is in the detail", understand what the penalties are for early settlement or the ability to extend the lease; is the car taxed for the full contract period etc?

Remember to choose the correct mileage band as you do not want to have to pay an excess charge at the end of the contract and any additional services you may need such as AA/RAC membership etc

Don't just choose the cheapest, You are looking for reliability and after sales service, someone you will get help from if you have a problem during the entire contract period, someone you can physically go to if necessary and has been trading for longer than a couple of years and of course can guarantee the car will be supplied.

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