Will I get a big bill if my vehicle does more miles than it is contracted for?
In short, no. We actively manage contracts to ensure that predicted mileage is as close to actual mileage as possible. For fleets of more than 10 vehicles we can offer pooled mileage agreements which offset over mileage vehicles with under mileage vehicles. Agility Fleet’s average excess mileage charge is 71% lower than the Industry average (source FN50 2014).
I am worried that I will get big bills for any damage to the vehicle when I return it.
Agility Fleet has some of the lowest end of contract charges, on average 26% lower than the industry average (source FN50 2014). We undertake all vehicle appraisals at our own de-fleet centre and we do not sub-contract this to third parties. This way we can ensure every vehicle is assessed fairly and common sense applied. We also provide advice and guidance on how best to avoid any end of contract recharges.
Can I reclaim the VAT on contract hire?
If you are a VAT registered organisation then yes, some or all of the VAT can be recovered. The monthly rental is split into finance and maintenance elements. On the maintenance element 100% is recoverable and 50% is recoverable on the finance rental. For vans or vehicles with no private use both elements are 100% recoverable.
How does contract hire help with my cash flow?
As everything is included in a fixed monthly fee it is easy for you to budget for your fleet operating costs. If your business has a strong financial covenant, we are often able to offer contracts with just a single month advance payment.
Do contract hire vehicles appear on my balance sheet?
No, currently under UK financial reporting standards because you don’t actually own the vehicles they will not appear on your balance sheet, providing you with a more favourable gearing ratio.
How can I be sure that Agility Fleet will be competitive with some of the larger leasing companies?
Agility Fleet is privately owned and has access to its own funds therefore our cost of funding is as competitive as any bank owned lease company. We are part of a maintenance buying consortium which means our operating costs are extremely competitive and as a smaller business we have lower overheads which also keep costs down. We have built our business on recommendation and referral and our customer testimonials support our low while life costs.
Do Finance Lease vehicles appear on my balance sheet?
Yes, as the hirer shares in the ‘risk or reward’ on the vehicle disposal proceeds, the vehicle must appear on the hirer’s balance sheet.
Does Finance Lease help with my cash flow?
Yes. You will have fixed monthly rental for the primary term. These can be lower than with other forms of funding as a higher balloon can be set.
Can I reclaim the VAT on Finance Lease?
If you are a VAT registered organisation then yes, some or all of the VAT can be recovered. For vehicles that have some private use 50% of the VAT is recoverable, for vehicles with no private use 100% is recoverable.
How can I be sure that Agility Fleet will be competitive?
Agility Fleet has a network of suppliers and with our significant purchasing power we can pass on savings to you.