Contract Hire And Warranty

By Author: Lee Tucker
Total Articles: 5
Comment this article

As a fleet manager it is important you keep control of costs as the price of motoring rises. The price of fuel continues to rise and current predictions have the cost of petrol at £1.26 a litre by the end of the year and diesel at £1.32 a litre. There is little you can do to combat this short of dictating what suppliers can be used and monitoring through the use of fuel cards. Of course you can reduce mileage use as well but this isn't always practical and defeats part of the value of a company car as an incentive.

One possible overhead saving for high mileage users is to select manufacturers with extended warranties so as to reduce some potential maintenance costs. A number of manufacturers have changed their warranty schemes to make the proposition more attractive. For instance Vauxhall now have a lifetime warranty with a mileage limit of 100000 miles. Toyota have extended their policy to 5 years with a 100000 mile limit, Kia have the same limit but an extended 7 year period. Hyundai leasing has an unlimited mileage limit over 5 years.

An additional benefit with these extending warranty periods means you ...
... can rotate the fleet on say a 4 year basis rather than 3 year and therefore reduce the cost of the monthly finance whilst keeping with warranty. Of course you will still have to consider costs of service and MOT if you opt for an extended lease.

Hyundai and Kia have grown their fleet offering in recent times as they offer lower cost motoring due to their advantageous cost base. This coupled with their warranty offering may make help them to grow this position in the future as well.

It is always worth considering all the manufacturers available and looking outside the tried and tested usual suppliers. If the business is running a large fleet try to arrange some manufacturer demonstrators to give your users the opportunity to test the vehicles.

It will then be time to speak with a reputable finance broker to look at contract hire pricing and to secure the desired vehicles. A BVRLA broker is normally the favorable option with a long trading history and proper office facilities. Best luck for your next car leasing deal.

Lee Tucker is a Sales Director of The Leden Group. Whether you are looking for car leasing, van leasing offers, contract hire, Audi leasing or private car leasing, Leden Group will have a solution to meet your needs.