Wessex Fleet offers a wide range of finance methods when it comes to funding your fleet, so you can choose the best option to suit your business needs.
Which Funding Options Are Available?
Contract Hire
Contract hire is one of the main ways a business can lease vehicles, and is designed specifically as a long-term rental, where the company leases the vehicle for a set amount of time while paying a fixed monthly cost for the duration of the agreement.
An initial rental payment amount, also known as the deposit, is followed up with fixed monthly payments for the duration of the agreement. You can tailor the deal to have lower monthly payments by agreeing a larger initial deposit, but the amount you pay in total (deposit + monthly payments) will be the same.
These contract hire lease deals offer your business fixed low monthly costs, flexible contract lengths, a brand-new car or van every few years and no depreciation worries.
With a contract hire, there’s no option to purchase the vehicle at the end of the deal, like there is with a contract purchase agreement.
Finance Leasing
Available for business customers only, the main difference between finance leasing and contract hire is that there are a range of options available at the end of the agreement:
- Return the vehicle to the lease funder to then be sold on
- Sell the vehicle to a third party on behalf of the lease funder
- Enter an agreed second lease paying a peppercorn rental
The monthly payments are also calculated in a slightly different way, and it will show on your business’ balance sheet as an asset though it remains the property of the lease funder.
Vehicle Rental
You could also consider a business vehicle rental if you didn’t need the car or van for an extended period of time.
550,000 vehicles are available at over 2,000 locations around the UK, so take advantage of Wessex Fleet’s easy-to-use booking system where you can request a hire car in just a few clicks, and the vehicle could be with you in as little as two hours.
Other funding methods that could be considered are an outright purchase or a contract purchase, with each having its pros and cons.
Wessex Fleet Salary Sacrifice Scheme
Wessex Fleet introduced a Salary Sacrifice scheme as an exceptional employee benefit that can help both your business and all of your staff.
Through the scheme, there are extensive financial savings that can be made in the long and short term, as well as providing Environmental, Corporate and Social benefits.
It is essentially an arrangement between your business and the employee to offer a fully insured and maintained leased electric vehicle for between two and four years in return for giving up a portion of their pay (equal to the cost of the lease and associated services).
Thus, the driver receives a lower salary but saves on income tax and national insurance contributions.
Benefits for your business (the employer) include a reduction in salary and National Insurance costs, increased employee recruitment and retention, a better benefits package, lower business mileage reimbursement costs, improved compliance with health and safety legislation and a reduced employee carbon footprint.
The employee benefits include having access to a brand new car for up to four years at a much lower cost, no credit or deposit checks, no impact on personal credit, reduction in tax and national insurance, and a hassle-free fixed monthly cost.
Why Choose Wessex Fleet?
Reasons to Choose Wessex
- Managing fleets since 2004
- Over 9000+ assets on the road
- Strategic relationships with key fleet partners
- Official members of the British Vehicle Rental and Leasing Association (BVRLA)
- Dedicated team hubs and account managers
- Specialists in bespoke fleet management
If you have any questions regarding your fleet funding options, our experts are always happy to answer any questions you may have, with over 15 years of experience in the fleet industry.
We can talk you through which funding option may suit your business the most, then we’ll create a bespoke fleet management plan to get the best out of your company’s fleet of drivers.