As we are coming out of what was arguably the harshest economic downturn that the country has experienced, people are changing the way that they manage their finances. They are budgeting – nobody wants risk.
After all, you never know what’s around the corner; the recession demonstrated that.
SMEs and individuals are now planning the cost of their motoring with greater care – personal contract hire and PCP is much more popular than it used to be and the business leasing market is also very busy.
Phil Page, Director of Compass Contract Hire Limited told me;
“More and more of our clients are opting for maintenance contracts simply because they don’t want any nasty surprises. They want to know what they are paying and fix their motoring costs for the whole time they have the car or van.
For example, a plumber who had had a pretty tough time during the recession told us that he wanted five years of risk-free, accurate budgeting when it came to his new vehicle. He didn’t want to be caught out again by unexpected costs so he opted for a maintenance contract.”
Once a fixed-price monthly leasing agreement has been chosen, the customer can choose to take out a maintenance contract with the funder.
These contracts are monthly payments that bolt on to your regular leasing payment (the maintenance element is also 100% VAT recoverable for a VAT registered business).
A maintenance contract will cover all routine tyre changes (wear and tear), servicing, exhausts and batteries; this will allow the customer to budget accurately for the whole time that they will be leasing their vehicle.
Discounted Servicing Costs
The monthly maintenance contract cost is typically very keen; the finance company negotiates discounts with maintenance partners nationwide and this is reflected in the monthly price.
This, of course, makes it cheaper for the customer to pay the maintenance along with lease than if they were to pay for the services themselves.
Even if a monthly budget is set aside, it is highly unlikely that any individual or SME could negotiate anywhere near the same terms with providers that a main funder can.
A reputable leasing provider will be able to guide you and advise you regarding a maintenance contract for your lease vehicle and will also make sure that you get a great deal. To find out more, contact Compass Contract Hire Limited on 02392 228070 or click here to request a call back.
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