Retention of Capital Low capital outlay to obtain a vehicle means valuable capital can be used to invest in 'core' business activities.
Accurate Budgeting
All variables associated with operating a fleet of vehicles, ie: routine maintenance, road fund license, Breakdown membership etc, are included in and fixed in the monthly charge. This provides a hedge against inflation and assists in future cash flows.
Improved Cashflow
Outright purchase demands bursts of valuable working capital as vehicles need to be replaced, and unforseen expenditure on maintenance becomes necessary.
Ease of Administration
Contract Hire almost entirely removes administration time and effort associated with:
arranging
sourcing
negotiation and purchasing
maintenance and service
temporary replacement vehicles
accident management and insurance write offs
licencing and parking fines
vehicle disposal.
