Kel-Berg Contract Hire gives you the ability to enjoy operating a new Truck or trailer without having to take on full ownership. With this option you can lease your equipment for a fixed period and for a fixed monthly fee.
How does Kel-Berg Finance Contract Hire work?
At the start of your agreement you pay an agreed number of advance rentals upfront. Your monthly rentals are based on the difference between the initial value of the vehicle and its projected residual value at the end of your agreement. Therefore, only a proportion of the vehicle's value is repaid, this avoids a large initial outlay and keeps monthly payments lower. Then throughout your agreement you make regular instalments until your agreement comes to an end. We manage the vehicle taxation process on your behalf, as well as sending MOT reminders. We will also administrate any vehicle fines when necessary, however there is an administration fee of £30 per fine.
At the end of your agreement.
Return the vehicle with nothing more to pay. Subject to meeting our Vehicle Return Standards i.e. vehicle condition, excess mileage, etc. As detailed in the return conditions, available on request.
Contract Hire features include
- Rentals also include the cost of a Road Fund Licence over the length of the finance agreement.
- We manage the vehicle taxation process on your behalf, as well as sending MOT reminders. We will also administrate any fines when necessary. Please note we charge an administration fee of £30 when paying fines.
- No large initial deposit.
- Pay an agreed number of advance rentals upfront.
- Fixed regular monthly rentals (that include VAT) this means you can easily budget.
- Rentals are based on your annual mileage agreed at the start of your agreement.
- Capital expenditure is eliminated.
- Your business gains an additional line of credit.
- Rentals are allowable against taxable profits (proportionally).
- VAT is reclaimable depending on usage (proportionally).
To find out more about how contract hire can benefit you and your business, contact us for further details.