For many individuals, if you need a car for the weekend or for a specific project or if you are awaiting your new car to be delivered, then a car hire arrangement would provide the perfect solution. Many car hire companies offer insurance, all maintenance and normally no early termination fees, so you can use the car for as long as you need it. For a business, having a new employee on a probationary period or an employee visiting from another office/overseas, can sometimes present a practical issue.
Car hire is very much for those who need a daily/weekly/monthly commitment on a vehicle.
While contract hire/ leasing is a much more cost-effective solution, committing to a 2 year (or more) arrangement can sometimes present a little too much risk. We would suggest looking at a car hire arrangement until you know the employee is settled into the company and will form part of team in the long term say after 3 or 6 months. While the employee is using the car, you can order the new contact hire vehicle.
As contract hire is a fixed term arrangement, you can only return the car via “early termination” which often involves paying half of the remaining rentals and this can be a costly exercise.
Car rental is very much different to the long-term contract hire products which is offered at CarLease UK. For customers looking at car rental, this is either something to satisfy a short term requirement, e.g. if you are moving house or need a car for the weekend or for business customers who need vehicles for employees on a temporary contract or for those on probationary periods.
Car hire is much more flexible than leasing, in that you can often return the vehicle at any time and there are no long-term contracts/penalties. In most cases, the product is available without any credit information – both individuals and businesses must submit a credit proposal with contract hire before they are able to progress further…
Most car hire arrangements are “non-status” so you essentially pay as you go without having to undergo a credit check. That being said, car hire is often more expensive than contract hire and so is often not a better product if you require a vehicle longer than 6-12 months.
