A Introduction to Business Contract Hire BCH
In recent years many companies have looked towards alternate methods of providing their employees with vehicles to get them to and from meetings. Company cars are pivotal in some businesses and are essential for long commutes and motorway travel etc. For a number of reasons many companies have opted to use Business Contract Hire (BCH).
BCH is basically the long-term rental of a vehicle by a company; it's rapidly becoming one of the most popular ways for a business to provide its employees with a vehicle. As the car is leased no lump sum payment is required upfront, monthly payments are made. This is often simpler than an outright purchase as it's much easier to budget for.
The finance provider who is supplying the vehicle will project the guaranteed future value (GFV) of the car. This takes into account several aspects such as the age of the car at the end of the contract. Along with other information like the estimated annual mileage this is used to calculate the amount each monthly payment will be.
The biggest selling points with a BCH deal is the image enhancement it can provide. A well maintained and serviced fleet of BCH vehicles looks impressive, professional and prestigious. This positive image can very often make-or-break deals with clients and is a much sought after commodity in the business world. Using Business Contract Hire enables a company to provide prestige cars to their employees at minimal cost. This can lead to having happy employees who will become loyal to the company and at the same time attract other professionals to come and work for them with the prospect of being provided with one of these new cars. Not forgetting that after a set period within the contract, these cars can be exchanged for brand new ones thus keeping the image at a high level consistently.
A variety of additional extras are sometimes available when entering a BCH deal, this can be massively cost-effective and worthwhile. Some companies can add servicing, road tax inclusion, maintenance cover costs etc to your contract. If possible these are worth getting as they can save a lot of time and money in the long run.
As you can see BCH can really help out a company looking for employee vehicles, if you feel that you or your business could benefit from a BCH deal then take the time to further research what's on offer and discover some great value-for-money deals.