Home » Autos and Cars

Where are the most competitive contract hire deals?

Aug 20, 2008
The cost of products and services vary from company to company and contract hire and leasing is no exception. One of the many factors that determines price is residual values (What the contract hire company believes the car will be worth at the end of the contract hire period). One of the difficulties with contract hire when comparing quotes, is that you are often not comparing like with like.

Contract hire brokers generally advertise the most competitive deals available on the Internet. It is important to bear in mind that when you replace a vehicle, if you are to take advantage of the lowest rate available, it is likely that you will be dealing with a different broker on each occasion. This is because different brokers specialise in different manufacturers and will sometimes have a special rate made available to them from a particular dealership with which they work.

Searching the Internet to find a rock bottom price on a car is probably best suited for a company that only has one or two cars, or for an individual using personal contract hire. For companies that acquire a number of vehicles a year, a more practical option would be to find a contract hire broker that is reliable and competitive across the range of manufacturers. Perhaps most importantly one that will not mislead the client on delivery dates as a means winning the business over a broker who is quoting a more accurate delivery date.

It would be quite difficult for a company that buys a number of vehicles, to be dealing with lots of different brokers on different vehicles. When what is really needed is a contract hire broker that can provide a comprehensive service, advising the company when vehicles are coming up for renewal, delivery dates for the replacement car and also provide all the related services that companies need, such as licence checking.

For those who are the occasional buyer then the Internet is a good place to start looking. A search in Google under contract hire will produce nearly 4,000,000 results and under personal contract hire in excess of 750,000. So how many of these companies do you look at? The evidence is that very few people venture past the first page; you will also find offers under vehicle leasing, car leasing and contract hire and leasing.

On the first page you will usually see one or two sites that will advertise vehicles for many different contract hire brokers. Some people don't like using these sites and want to go into the website of one particular company and see what they are offering; they feel that they are more reliable. If you don't mind using a site that is advertising different broker offers, then there is no reason why this should not form part of your search. The only thing to bear in mind is that these sites don't generally police their advertisers; so seeing a vehicle advertised at a particular price doesn't necessarily mean that it is available at that price.

When using a directory website you have to try and recognise the more reputable companies, of which there will be many. Usually their offers will be easy to understand and they will nearly always stipulate how a deal is made up, for example they will not just say contract hire over 36 months, they will show how those payments are made up the most common profile is 3 initial payments followed by 35 monthly payments. If they do not explain how the offer is structured, it is quite possible that whilst the monthly rental looks low, the initial payment could be say 2,000.

It is not unusual to find that a company is asking for six initial payments, it's difficult to see why a company would do this other than to make the monthly rental appear lower than their competitors. When comparing with other companies it is important to take into account the three additional payments that you will be making.

Where a delivery date is quoted that is much sooner than generally seems available, it may be that the broker has access to vehicles that others do not. It may on the other hand mean that they are promising a delivery date that they know is not achievable. One should proceed with caution, particularly if there is a deposit involved. The customer should perhaps speak to them on the phone and see if he feels comfortable with the information being given,

This applies particularly with pricing; there are companies that quote prices on directory websites, which are considerably less than their competitors. Sometimes if you go into their website you will see the vehicle at the correct price, which may be up to 25 more than the price they showed on the directory website. On other occasions the website will also show the wrong price and it is only when the prospective customer phones that they discover that those vehicles "have all been sold" It is hoped that contract hire and leasing brokers will eventually be regulated by the FSA and these practices will stop.

Contract hire broking is an industry where customers are frequently let down, sometimes this happens where small brokers who have to work through other brokers, have themselves been let down by the main broker.

Perhaps one route to follow would be to find say three or four companies offering the lowest prices and then speak to them all; try to establish if they really can provide the vehicle at that price, on the promised delivery date and that they are not going to contact you after a few weeks and change the price, the delivery date or both. Ultimately choosing a company that inspires the most confidence, even if it is 2 or 3 a month more in terms of contract hire rental may be the best option.
About the Author
For more information about contract hire, lease purchase, finance lease or vehicle hire purchase in the UK please contact Bowater Price plc 01494 536 536.
Rating:
Please Rate:
(Average: Not rated)
Views: 156
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources