Thank you for considering Contract Hire (CH). Please read this document carefully as it provides a summary of the key points of a CH agreement. It does not show all the benefits or exclusions. Please speak to Alpha Contracts if you have any queries about whether this product is suitable for you.
CH is a fixed term and mileage-based agreement and it is important that your agreement reflects your predicted annual mileage. Contract Hire is a popular long term vehicle rental agreement suitable for sole traders, partnerships and limited companies. With CH you will pay an agreed number of fixed monthly rentals at the prevailing rate for the specific period of hire you have chosen. At the end of the contract, the vehicle is returned to the leasing provider, thus giving you no disposal concerns.
·Low initial payment typically equivalent to 3 monthly rentals
·Fixed monthly payments, fixed cost motoring
·Term - From 2 - 5 years and a total mileage up to 150.000 miles (maximum 50,000) per annum
·For peace of mind motoring optional maintenance plans are available for an additional fixed monthly fee
·Road Fund License is included.
·The vehicle is returned at the end of agreement. Thus removing concerns about disposal
·Tax benefits - If your are a VAT registered company, you can claim back 50% of the VAT on the finance element on a car agreement, 100% of the VAT on a commercial vehicle
·100% VAT reclaimable on maintenance payments
·The vehicle appears “off Balance Sheet” as it is owned by the leasing company
·Free up capital – Get a new vehicle without the up-front costs, freeing up money for you to invest elsewhere in your business.
·If you need to change your vehicle early then an early settlement will incur charges which can be expensive
·If you do not know what your predicted mileage will be
·Business type restrictions. e.g. we do not permit vehicles to be used as Taxis or Driving Schools
·If you plan to export the vehicle or use abroad for extended periods.
·You must ensure the vehicle is comprehensively insured at all times.
·If you have not opted to have the servicing maintenance provided by the leasing company, you are responsible for servicing the vehicle in accordance with manufacturer's recommendations, we call this customer/driver maintained. You must have the vehicle serviced and maintained in accordance with the manufacturer’s requirements.
·At the end of the agreement we will assess the vehicle condition based on the standards set down in the BVRLA Fair Wear and Tear Guide refurbishment charges may apply.
·If you exceed the total mileage, charges will apply, please refer to your order.
·You are responsible for registering your vehicle with the DVLA if a ULEV or LEV (low emission vehicle) for any waiver of fees,(for example, the London Congestion Charge) and for any vehicle with the Dart charge for using the Dartford Crossing. If you fail to register and receive a fine the leasing company will charge the cost of the fine and an administration fee.
·If you receive any traffic infringement penalties you are responsible for paying them directly to the authority concerned. If any fines are forwarded to your leasing company, they will settle the fine and recharge this to you with an additional administration fee.
Where the vehicle is fitted with a DPF (Diesel Particulate Filter) or a DEF (Diesel Exhaust Fluid) system e.g.'Adblue', Alpha Contracts Leasing Ltd cannot be held liable for incorrect usage. You are responsible for adhering to the manufacturer's guidelines.
Different fuel types suit different driving requirements. Before placing your order and entering into an agreement with us, please ensure you have considered the most appropriate fuel type, based on how you plan to use the vehicle; diesels or electric vehicles/ plug-in hybrids may not always be the most appropriate fuel type. If you discover, once the vehicle has been delivered, you have chosen the wrong fuel type, you will have no recourse other than to terminate the contract and pay a proportion of any remaining rentals as an early termination charge. Diesel vehicles are fitted with DPFs (Diesel Particulate Filters); your driving patterns could cause deposits to build up resulting in damage to this component. Please check that a diesel vehicle is suited to your requirements as you would be responsible for the costly replacement of this component if it is damaged.
Details of the cost of your credit agreement including the number and amount of the rentals you must pay are shown on the hire agreement you sign. As you are renting this vehicle, rather than buying it, regulations do not require declaration of any interest involved in the rental calculation and no Annual Percentage Rate (APR) is required.
If your anticipated mileage changes significantly during the agreement you will have the option to either increase or reduce it. Any such change will be at the sole discretion of the Finance House and we reserve the right to charge an administration fee for this service. Please note your monthly payment will be affected by any such change. Please contact Alpha Contracts Customer Services on the number above to obtain a quotation should you wish to do this.
Dependent on where you sign your Agreement you may have cancellation rights, if these apply to you they will be clearly detailed on your Pre-Contract Agreement.
Alpha Contracts Leasing Ltd T/A Alpha contracts is registered and authorised by the Financial Conduct Authority. Firm Reference Number 462797. Our Consumer Credit License can be viewed on the OFT’s public register www.oft.gov.uk. You should carefully consider the suitability of any offer of finance before entering into any financial agreement.
If you need to settle the agreement early then please contact Alpha Contracts on the number above to obtain a quotation.
You need to be sure that you can afford the payments for the duration of the agreement. If you don't make your payments on time or if the lender has to administer unpaid charges such as penalty notices you may incur additional costs. You will also be liable for any costs incurred by us for recovering any arrears, repossessing the vehicle or for the cost of legal action.We are required to report to a credit reference agency. Missing payments, or making late payments, can therefore affect your credit rating, which may make it harder for you to obtain finance in the future.
If you would like any further information regarding your finance product or any aspects of your finance agreement you can contact Alpha Contracts on 01604 756620.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 01604 756620
Alpha Contracts Leasing Ltd
Alpha Contracts Leasing Ltd are a credit broker and not a lender and offer credit from a limited panel of lenders. We are authorised and regulated by the Financial Conduct Authority. Registered No : 671136
Registered in England & Wales with company number : 03665973 | Data Protection No : Z5055488 | VAT No : 687 6956 52
Registered Office : Park View, Upton Lane, Upton, Northampton, NN5 4UX
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