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For many people, one of the greatest joys of going on holiday is taking charge of a brand new, state-of-the-art hire car and enjoying a week or two of hassle-free, pleasurable driving. One disappointment of returning home, as unconscious as it may be, is having to go back to using one’s older, less comfortable car. Smart car users, however, have discovered a cost-effective way of bringing that luxurious, care-free hire car feel into their everyday lives: contract hire car lease.
Just like hiring a car, contract hire enables the driver to have instantaneous access to one of the latest vehicles on the market, with no worries about having to pay the road fund licence, and the backing of a full manufacturer’s warranty. Contract hire, in spite of this, actually improves on standard car hire in the following ways. Firstly, the contract hire customer is able to choose any make, model and colour of vehicle, as if he or she were purchasing a car direct from the manufacturer. Secondly, the contract hire car lease customer is granted full use of this same vehicle for the entire length of the contract period (usually three years). Thirdly, the monthly rates for contract hire are tremendously favourable, since they are, for the most part, derived from the value of the car’s depreciation over the contract hire period, rather than on its total sale price when new.
One reason why vehicle leasing is so popular with many firms, is that there is so much scope for accounting and taxation incentives. These benefits vary according to the type of lease chosen, with some types of lease having more than one of these benefits. One of the most widely recognised incentives of vehicle leasing, is a business’s ability to reclaim at least 50% of the VAT due on each monthly lease fee. This is a benefit applicable for VAT-registered businesses, which take out either a contract hire or finance lease agreement.
A second incentive is a business’s capacity to offset the leasing costs against corporation tax. For van leasing under a contract hire agreement, 100% of the monthly lease payment can be offset against corporation tax. For cars under the same contract hire agreement, the amount may be reduced, depending on the emissions from the car. For those organizations that prefer to keep their lease payments off the balance sheet (in order, for example, to reduce their official outgoings so that funds can be allocated to another area of the business), undertaking a contract hire agreement will provide the solution they seek. On the other hand, should a business feel it could profit from including lease payments as an asset on its balance sheet (so as to attract finance, for example), a finance lease will be the solution.
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Tags: car lease
Posted in Cars and Trucks · September 2nd, 2010 · Comments (0)
It doesn’t take a genius to work out that Britain’s road networks are in dire need of an overhaul, crowded at the best of times, grid locked, noisy, smoggy and stressful at the worst. This makes the daily commute to work as much of a chore as working itself, bad enough for the average Joe just trying to get to work as quickly as possible but terrible for the enthusiastic motorist! Yes some of us actually enjoy driving, but this is being stunted by the increasingly bad levels of congestions on our highways. Many of us scrimp and save for years to buy the car we’ve always dreamed of only to hardly ever be able to experience its real potential, castrated by the frustrating stop-start driving format we are forced to adopt.
Car lovers, have you ever considered a driving holiday with a difference? If you’ve just purchased a brand new car now would be the ideal time to stretch its legs on some real, uncongested roads, with no hesitant old dears or lane hogging truckers impeading your path. Weekend breaks in Wales a really cheap at the moment and the Welsh roads are a wonder to behold. Twisty undulating lanes give way to wide open tracks with wonderful vistas either side, allowing you to really get the hammer down and enjoy your driving for once. Holiday Cottages in Wales would be the perfect base for your weekend getaway, gather a few fellow car nuts togther, spend the day blasting around the hills and valleys and relax in relative tranquility in the evenings.
Whether you own a rapid hot hatchback or a road eating V10 monster, chances are you’ve had to reign in the power on British main roads, Wales offers you a stage to really let go and get your boot down. As with any other persuit remember to play safe, the same road traffic regulations are in place in Wales as they are in the rest of the UK and due to the isolated nature of much of Wales, if you do exceed your limits and suffer a crash, medical help could take time in reaching you. Remember to stay safe and legal and you can enjoy great short breaks in Wales with your new car
Tags: Holiday Cottages in Wales, short breaks in Wales, Weekend breaks in Wales
Posted in Cars and Trucks · August 26th, 2010 · Comments (0)