LONG TERM NON-MAINTENANCE or WITH MAINTENANCE CONTRACT HIRE (over 18 months and up to 48 months)
Contract hire is a popular choice as it is both cost-effective and easy to manage. alliance has extended its product range to include long term contract hire packages due to their popularity and need for many fleets to vary the funding arrangements across diverse fleets. The term contract hire means agreeing to take control of a car for a fixed period – it’s yours to drive but it is never actually yours to own. Instead you reach an agreement with alliance to make fixed payments (usually monthly) for the duration of the contractual period. At the end of the contract you return the car to alliance.
Contract hire offers fixed-cost motoring – you know exactly what you will have to pay and when you have to pay it, helping you to budget. However, what if you require a car to solve a short-term problem – perhaps just for a few days, or a few months. In these instances, daily rental is a product to suit such circumstances or alliance long term rental.
Long term contract hire is a reputable tried and tested solution to funding a vehicle fleet over an extended period. You will make payments (usually monthly) based on the difference between the value of the car at the start of the term (its retail value) and the value of the car at the end of the term (its residual value). You will also be asked to stick to a strict mileage limit which will be used by alliance to determine the residual value. If you exceed the mileage limit you are likely to be penalised as this will affect the vehicle’s depreciation.
At the end of the period, you simply return the vehicle to alliance and walk away. There is no option to buy the vehicle. Maintenance of the vehicle is generally included.
What are the advantages of long-term contract hire?
• Fixed cost motoring – Long-term contract hire allows you to budget for the period of each hire knowing exactly what your monthly outgoings will be.
• Road Fund Licence and Maintenance –incorporated into the agreement.
Please see further information in FAQs listed under short term contract hire.