By Shaun Parker

Car leasing is gaining in popularity for personal car users that are looking for alternatives to purchasing a vehicle. Car leasing has always been a very popular option for business users who want to fund their company car. This has been the case for a number of reasons. Firstly businesses are able to keep an eye on a tight budget by paying a monthly fee.

This also means that the business does not have to worry about paying the large down payments associated with purchasing and the responsibility for the vehicle remains with the company that lease it out. These benefits are of course transferable to personal car leasing customers. The other major benefit to business car leasing customers is that they often benefit from many tax advantages and as a result it has long been popular for businesses.

Perhaps as a result of the recent credit crunch in the UK people are turning to car leasing for their personal cars as unlike purchase the monthly fees are static and for people that struggle to get approved for a loan leasing is a good alternative. There are many advantages to personal car leasing for both the customer and the provider.

It is a finance option that enables the person that undertakes it to afford a vehicle that they wouldn”t already be able to afford. Throughout the deal the vehicle remains the property of the leasing company and as a result the person that uses the vehicle does not have to take responsibility for selling it on when they want to move on they simply have to return the car and the keys and they are free to walk away.

This means that someone that is leasing a vehicle can easily change vehicles once their contract is up without having to go through the arduous process of selling a vehicle on. The major benefit of not owning the vehicle is that the person that utilises vehicle leasing does not have to worry about paying the vehicle down-payment that you have to pay when you are looking to purchase. This means that you can have free ownership of a vehicle without having to go into debt and take up a loan for it.

Car leasing is popular over a number of different time periods the length of the contracts are usually between 12, 24 and 36 months. The reason for this is that for the company that lease the vehicle it is beneficial to arrange the contract over a longer period of time. This means that the leasing company can be assured of an income for a vehicle over a longer period of time. The benefits of this to the company that lease the vehicle are obvious but there is also a benefit to the people that lease a vehicle.

The main benefit for longer term leasing is that it generally works out cheaper than leasing over a shorter period of time. Because the company can be assured that you will be paying out a set amount of money each month they can lower the monthly costs of their deals and offer you incentives. This means that the longer the term of the leasing contract the less money you will pay. This is a real benefit to many people and often their budget will stretch further and they will be able to afford a better vehicle.

About The Author

Shaun Parker has been at the forefront of the car hire and personal car leasing industry for several years. He has arranged finance for hundreds of satisfied customers. To find out more visit http://www.ambervehiclesolutions.co.uk

By Shaun Parker

Contract hire is a way of financing a vehicle that is popular with both business and personal users. It is different from purchasing in a vehicle in that the person or business that hires the vehicle do not own the vehicle but rather pay a monthly fee to hire it before returning it at the end of an agreed period of time. In this respect contract hire is very similar to conventional hire deals however there are a few fundamental differences.

Contract hire is generally arranged over a longer period of time than normal car hire deals and these longer length of deals usually range between 12, 24 and 36 months. The majority of deals on contract hire last for three years the major benefit of these long term deals for the person leasing the car is that they generally work out cheaper than the shorter term deals. For the company that lease the vehicle this also provides a greater level of security as they can feel confident that there vehicle will bring in an income over a longer period of time.

Contract hire is often arranged by finance companies who calculate the cost of the rental price based on the levels of depreciation in value of the vehicle, the funding costs of purchasing the vehicle and the cost of the administration associated with arranging the deals.

The company takes full responsibility of ownership of the vehicle and will suffer if they do not calculate their margins effectively. At the end of the contract the person that has used contract hire returns the vehicle without having to worry about selling it on and the finance company take on this responsibility. The contract hire company also has to ensure that they receive the monthly fee and they often build in a down payment that might be two or three times the value of the monthly payment. This is done to secure the deal in the event that the person leasing the vehicle can”t pay off what they own.

The contract hire deals are usually offered with insurance included as part of the monthly payment. It is also possible to have maintenance costs included in the price of the contract and furthermore breakdown cover can also often be added. This means that someone that utilises contract hire can do so without having to worry with any of the unexpected costs that are related to owning a vehicle. Often the only additional cost that people that use contract hire have is fuel. This can be a really desirable aspect of contract hire and makes it a particularly appetising proposition for businesses that need to keep monthly outgoings static.

It is also beneficial to businesses as it does not mean that they have to fork out large sums of money to purchase a vehicle and do not have to worry about selling them on when they become outdated. This also means that they can afford good quality cars which in turn give a good image of the company.

Contract hire has steadily become more popular in the UK as more people begin to understand the benefits of contract hire over purchase. It is fast becoming the favoured methods for business and company cars in the UK and with the credit crunch setting in many people are choosing it as an option for their personal car. It is particularly beneficial to businesses as there are many tax advantages for businesses.

About The Author

Shaun Parker has been at the forefront of the car hire and contract hire industry for several years. He has arranged finance for hundreds of satisfied customers. To find out more visit http://www.ambervehiclesolutions.co.uk

By chris sullivan

Privacy means a lot to everybody since there are a lot of things they would to keep on for themselves.

However, as one of the universal laws that the nature of things have provided us, there are no secrets which are not opened up to the world. One way or another, you would have to let others know what is going in your life and what your past is. Well, sure you could say that a secret is something you could not tell anyone, especially when it is yours, but there are cases that someone would delve into your past no matter how clean or dirty it may be.

Companies like the credit card businesses are just a few of the institutions who are willing to pay off time just to know have your background be checked.

Background check is an official process of monitoring on one’’s history and records. In background check or background investigation, the company do not only see your private past life but also your credits. With it, they would see if you hold a worthy credit history… in the case of the credit card companies or the loaning companies or if do not.

In our world today, background checking is not only for the companies, individuals could also engage themselves in it. In the old world, background investigations were done only by the police and now, business companies could buy services to check into someone’’s past.

Background checking is usual to people who are taking a job or who already have a job, most especially if they have a high position. With monitoring one’’s history, it would give the company’’s management if they have hired or will hire employees who are worth it and who are trustworthy.

If ever they find some smudge in their employee’’s records, they could dismiss that employee or demote him - if they have that much pity. Knowing one’’s history would give a lot of idea to someone and could assure the employers.

Actually, besides employees and people who are hopeful to have their loans be permitted, background investigation is also present in people who rent an apartment since the landlord would want to make sure the people he would lend his apartment to are safe people and not one of those undisciplined renters, this often happens to people with strict landlords, then there are those who grant scholarships to others and this is necessary since obviously the ones who gave the scholarship needs to know if the student they gave this honor to is someone who deserves it, and lastly, there are also those who would even go as far as checking out their date’’s records.

Yes, it sounds quite a human privacy violation but it truly is needed to some companies. Besides laws like the FCRA or the Fair Credit Reporting Act states that any small enterprise needs to have their employees sign a contract saying that they would allow a background check on them. Though, the extent of this law depends on your states laws since there are various rules that each state follows.

About The Author

DO A BACKGROUND CHECK! In our society today, you can never be too careful. Do a background check and make sure that person is not a fraud, or worse. Protect yourself by going to
http://www.assetsearchpros.com/backgroundcheck.html

By Shaun Parker

Finding cover for a short period of time can be a daunting task. Often someone that are looking to borrow a car from a friend are worried about doing so without arranging adequate insurance. Arranging insurance over a short period of time can be frustrating if you need to negotiate with your existing insurance provider and change a policy that you already have.

It is possible to arrange an independent short term cover deal for periods between a single day and 28 days. If you find yourself trying to add a new driver on a existing policy it can be very time consuming and as a result many independent providers have stepped in to help people in this predicament. Short term cover is often offered on the internet with policies that can be printed out immediately. This can be a great advantage for people that need coverage in a hurry and do not want to wait around for a policy document to be posted. Short term car insurance can provide the answer to many vehicle problems.

Short term car insurance can be a great benefit in a wide range of different scenarios. This type of arrangement can help if you are looking to borrow a vehicle in a wide range of different situations.

You may be looking to transport someone that is not well to and from hospital or to transport furniture to and from a house or even if you are moving home. It is also a great option for people that want to test drive a new vehicle before they buy. This means that even if you are selling a vehicle privately you can arrange an independent insurance deal that will protect your long term deal in the event of an accident by the person that is test driving the vehicle.

The short term deals can be sourced and arranged quickly on the internet so that you can have an arrangement in place in minutes. This can be a great way of ensuring peace of mind quickly once you have decided to lend your vehicle to your children or any relatives. After all it is vital that you have an arrangement in place as it is illegal to drive a car in the UK without insurance and most individual deals do not allow other people to drive the vehicle.

The length of deals available can differ greatly. They typically last between 1 day and 28 days with the longer period of time working out cheaper on average. In most cases these shorter term deals cost considerably more per day than a long term car insurance deal. But the benefits of this are that you are not tied into a long term deal and as a result it can offer real savings for people that use their vehicles sparingly.

The short deals are popular with students that use a vehicle when they return for the holiday periods. And also for people that want to borrow a van from a friend for a booze cruise. In business they are often utilised for situations when a vehicle needs to be borrowed for someone to attend a meeting somewhere that is a long distance from the place where the business is located. It is also a great option for people that want to borrow a vehicle to go on a holiday or a short break. There are thousands of different providers in the UK and a quick internet search for short term car insurance should put you in a position to find a reputable provider.

About The Author

Shaun Parker has been at the forefront of the Short Term Car Insurance industry for the last 10 years. For more information visit http://www.dayinsure.com

By Amy Nutt

It cannot be emphasized enough how important car insurance is. It is that layer of protection that protects you in the case you are in an accident with an uninsured driver or you are cited to be at fault for the accident. However, what it protects you from is being responsible for your own medical and property damage costs when the other driver is uninsured and also protects you from a lawsuit if you are judged to be at fault for the accident. There are two types of insurance that you will become familiar with and those are collision and comprehensive coverage.

Collision

Collision coverage covers you when your car hits another vehicle or is hit by another vehicle. It even covers you if you are hit by an object. For example: If something falls off the back of a truck in front of you on the highway and hits your car, you are covered under your collision coverage. You choose the deductible that you afford. The higher the deductible, the lower the premium, but you must make sure that it is a deductible that you can pay at anytime because you never know when damage may occur to your vehicle. If the car is an older car, then the coverage may be for the amount the vehicle is worth. If you have a loan on your car, then the lender will require that you have collision insurance.

The protection that is provided can be quite significant as long as the vehicle is not a total loss. Depending on what your state considers a total loss in damage to the car is going to depend on whether or not the insurance company is going to pay for the repairs. If they are, let’’s take for example damages that are $1,500 and you have a deductible of $500. This means that you will pay the $500 deductible and the insurance company will pay the $1,000 difference in the repairs.

As stated before, this coverage comes in handy if you have a loan on your vehicle. Even if you don”t have a loan, if the car is newer, you may want to make sure you have collision coverage since the repairs can be costly on newer cars. However, this coverage may not be necessary for older cars.

Comprehensive

Comprehensive coverage covers your own vehicle and other vehicles that you may be driving when an accident other than a collision accident occurs. Basically what comprehensive coverage takes care of are theft, flood, fire, and even damages inflicted by animals. Just like with collision coverage, the higher the deductible the lower the premium is going to be. However, it is important to pick a deductible that you are comfortable paying if something were to occur.

The protection method works the same way as with collision. If your car sustains $1,500 in damage and your deductible is $500, then the insurance company will pay $1,000. Comprehensive coverage is not insurance that is required by the state, but it may be required by a lender if there is a loan on the vehicle. Even if you don”t have a loan and the vehicle is fairly new, you may want to have this coverage since repairs for newer cars can be quite extensive. Thos with older cars or cars that are not in good running condition may not want to have this type of coverage.

Importance

So as you can see, having collision, comprehensive, or both can be quite important depending on your situation. Just make sure that you are in compliance with state law and have deductibles that make you comfortable.

About The Author

All our home, travel and car insurance products include standard coverages with options and deductibles that can be adapted to suit your needs. Visit us to receive your car insurance quote. http://www.belairdirect.com

By Shaun Parker

Finding insurance on a vehicle that you want to borrow over a short period of time can be a frustrating and complex process. If you want to include a new driver on your policy you can find yourself wasting a great deal of time talking with your existing policy provider to include a new driver and it can end up putting your no claims bonus in the hands of the person that borrows your vehicle.

Fortunately there is a way to avoid the risk and get car insurance over a short term. This can mean that you can get a policy for a short period of time that is completely independent of your existing deal. Short term Car insurance can be used in a vast variety of different situations and it can be the solution to many vehicle problems.

Some of the major uses of short term car insurance include borrowing a car to go on holiday, borrow a car to drive someone that is unwell to and from the hospital or to borrow a vehicle to transport furniture or move house.

The majority of the short term car insurance deals can be sourced through the internet which means that they can be arranged quickly and the major benefit of this is that you can print off a policy document immediately and have possession of your policy right away. This can give you great peace of mind especially if you are lending a vehicle to a friend or borrowing from someone and are anxious about having an accident.

Short term car insurance deals generally refer to those that last between 1 and 28 days. These types of deals can be arranged for any types of vehicle and are often used for borrowing a van for moving home and also for students that return home from university for the vacation and wan to use the family car.

It is also a very popular method of getting insurance cover for driving a car on a test drive or for driving a newly purchased vehicle. It is a great help to people that need to use a car quickly and have a friend or relative that is generous enough to lend one. It also comes in useful for businesses that need to use a car for a trip to a meeting.

There are a vast number of providers that offer this service in the UK and many of these providers offer similar deals to one another. It is important that you find a provider that you trust and carefully scrutinise the policy agreement before you go ahead and purchase a short term policy.

These policies are generally arranged on a fully comprehensive basis so that you can be sure that whatever damage occurs in the event of an accident the costs will be covered. This can provide you with great peace of mind and it can be reassuring especially if you are lending your vehicle to your bratty son!

This type of coverage can be a great option for people that want to take a car out for a test drive. It can be arranged for a single day and the cost of this will be substantially less than being tied into a long term cover agreement. It also makes it easy to arrange as you do not have to go through the complex process of changing an existing policy.

Many of the providers of short term car insurance also have a range of options that include breakdown cover. This means that you can cover the vehicle for any eventuality. Essential if you want to avoid any embarrassing problems that might cause an argument with the person you have lent the car to or the person you are borrowing the car from.

About The Author

Shaun Parker has been at the forefront of the Short Term Car Insurance industry for the last 10 years. For more information visit http://www.dayinsure.com

By Pamela Dombrowski-Wilson

Most people see long term care insurance as nursing home insurance when if fact it is the opposite. Long term care insurance provides options to avoid nursing home placement, unless a nursing home is where an individual prefers to live. And please do not misunderstand, nursing homes have changed significantly over time and many are now very clean and nice facilities. However, a nursing home is usually not where an individual would choose to remain for the final days or months of their life unless there are no other options.

Long term care insurance is becoming more popular as consumers realize it provides options for independence. Many studies indicate that two thirds of individuals over age 65 will require a long term care stay. A long term care stay is a nice way of saying nursing home or skilled facility stay. And over forty percent individuals over age 65 will experience a long term care stay lasting two or more years. This is a long time if you are in a facility in a shared room — not a private room, with a roommate you dislike. Think back to those college years and consider how you might like to be in a similar situation at age eighty.

And surprise, Medicare will not pay for a long term stay. Medicare usually covers days 1-20 if medically necessary and progress for rehabilitation occurs. On days 21-100 the individual pays an insurance co-pay of $128 per day (in 2008) and after 100 days, the individual is totally responsible for one hundred percent of the cost which averages between $175-220 per day (in 2008). As with anything these costs are expected to increase each year by 3-5% percent.

Long term care insurance not only will pay for these long term care stays, it will pay for care to be provided at home, which is where most individuals prefer to live as long as possible. It also pays for day care, assisted living, home modifications and other services depending on the policy.

Many individuals mistakenly think that long term care is too expensive. As opposed to what I ask you? As opposed to $6,000 per month in a long term care facility? Compare a monthly premium of $200 to the cost of $200 PER DAY in a long term care facility and tell me if long term care is too expensive?

Many are shocked when the cost of one year in a long term care facility at $75,000 eats up most of their retirement savings. Or when they have to “spend down” to qualify for public assistance called Medicaid. The government has determined that with the increasing numbers of baby boomers who will require medical care in the future that there is no possible way that the government can fund this care.

Thus the Debt Reduction Act of 2005. This Act states that individuals wishing to qualify for Medicaid assistance will need to spend all of their assets prior to qualifying for Medicaid. And there is a five year look back period to ensure that assets like homes and money were NOT given away to family members in an attempt to avoid the government receiving these funds. When money or resources are given away, the government imposes a penalty equal to the financial amount given away divided by the cost of one month in a long term care facility. So for example, if your parents gave away $60,000 today and wish to qualify for Medicaid in 2009, Medicaid will accept the application and penalize them for ten months of care. This means that they cannot receive services through Medicaid for a period of ten months from the date of their Medicaid application. Which means that if the care is truly necessary, children and other family members will pay personally for the care.

Even more reason to consider long term care insurance not only for yourself, but purchasing a policy for your parents if they cannot afford the premiums. The question is will they pay now or will you pay later for your parent’’s care. Caring for parents and the emotional and financial stressors significantly impact the retirement prospects of children. Parents always assume that their children will take care of them but do not consider the impact on employment, retirement income and even marriages and children.

Don”t put yourself, your parents or your children in a situation of requiring care and not having a back up plan on paying for care. Because we will all pay for care one way or another when we are older. It’’s inevitable. We will pay because of our ability to have long term care insurance that ensures we decide about our care. We will pay because our parents require care and they have not prepared financially for the cost. We will pay because we did not prepare financially for the cost by having to receive care through public assistance called Medicaid.

Unfortunately the probability that we will all die is one hundred percent absolute. The question is how do you want to spend the last years of your life? In a manner you choose or in a manner chosen for you?

About The Author

Pamela D. Wilson, The Care Navigator, provides long term care planning and education for families experiencing transitions in health care. Visit http://www.thecarenavigator.com for information or call 303-810-1816. Receive free education and tips at http://www.thecarenavigatorblog.com

By Anna Stenning

Getting bike insurance can cause some people a bit of stress and confusion, especially if they have bought a motorbike for the first time. The confusion can come from all of the quotes and offers you will receive when selecting the right insurance company. Deciding on the offer is dependent upon your needs and the kind of bike you have. In addition, how much the insurance costs is affected by how long you have been riding a motorcycle for.

All bike insurance, unfortunately, will charge you more if you are an inexperienced rider. Those who have been on the road for many more years than you will be quoted something a lot cheaper. This is a normal thing for everyone looking for cheap insurance, as there are more risks of damages, incidences and accidents with an inexperienced and new rider. Statistically there are more claims from those who have only just gained their motorbike license.

There are different types of insurance policies, which make a difference to your entitlements after an incident. The first of these is a third party insurance policy, which covers the policyholder from third party damages. This does not however, cover for your own bikes damages, so even though it is much cheaper it will mean that you will need to find a way of paying for your own costs of damages and medical expenses. This also includes if your bike is caught on fire or stolen.

In the instance that your bike is set on fire or stolen, the third party theft and fire bike insurance will cover for all of the above including theft and fire to your own bike. This is a popular option for most first time bikers if they are looking for something cheap.

These days there are cheaper insurance covers, with lots of deals to be found, however, it is a question of getting to apply for it first. Always consult with an independent insurance broker; they will point you to the right direction if you are finding it difficult to make a decision.

Another more expensive type of bike insurance is the comprehensive insurance policy will cover for all of the above and damages to your bike, with the added benefit for covering for any medical expenses. This is the most expensive and yet the best insurance to opt for, as this will guarantee you that there will be no problems and all costs will be covered. Your money will be well spent as the main purpose of concern is not your finances, but your safety.

There are certain things to avoid such as sneaky cancellation fees that you may not know about. If this is not in the contract, you should enquire about it. Interest charges may be more than most bank credit cards so always check this before you start paying. Avoid paying legal expenses in advance, as this can be offered free of charge from certain companies.

If you are making modifications to your bike, this may not be covered as there have been additional changes made to it. You will need to let the insurance company know about this, no matter how small the modification may be.

About The Author

Anna Stenning is an expert on bike insurance having researched many different quotes. For more information visit http://www.insureyourbike.com/

By Gary Terrazas

There are various ways a company can reduce the maintenance costs of it’’s fleet. A maintenance contract is an option that is offered as part of contract hire and personal contract hire. However it is worth considering carefully, if indeed it is worthwhile taking up. Every case is different but often the additional cost is not justified. As to whether it is worth considering will partially depend on the mileage that the vehicle is likely to do.

Assuming that you do not have a maintenance contract the following suggestions could be worth considering; when the vehicles go into the dealership for servicing, you could ask them to carry out the basic service and list any other item that they feel needs attention, providing of course there is not a safety issue involved. This will help avoid having tyres changed because there is only 2000 miles (”approximately”) of wear left. Well 2000 miles is 2000 miles and on occasions those 2000 miles of wear, when checked independently have proved to be 5000 miles. If you multiply that across your fleet or indeed if you have just one vehicle, it’’s a lot of money.

The dealership may argue that if the tyres are not changed when the vehicle is in for a service, it may then be overlooked. With serving intervals now often 18,000 miles apart and more, if that were the case, if a car only has 16,000 miles of wear left presumably you would also have to change them on the basis that they wouldn”t last until the next service, and may get overlooked.

When it comes time to change tyres or indeed brake pads there is no reason to have the dealership carry out the work, although it is important to follow the manufacturers recommendations. So when buying tyres avoid tyres that are “exactly the same” as those recommended by the manufacturer.

The fact is that much of the work carried out by the main dealership is often more expensive than it would cost elsewhere. There are many organisations that can supply and fit the manufacturers recommended tyres, significantly cheaper. Many of them will probably be local to you and will allow a company to open an account with them.

Having a car serviced at a main agent is generally not in its self terribly expensive; it is everything else that is carried out at the time of the service, which usually proves to be costly and is of course the most profitable part of servicing for the franchised dealer. In a study carried out by the Office Of Fair Trading they estimated that 1.4 Billion is spent every year on servicing cars up to three years old and that after sales costs represents approximately 40% of the whole life cost of a car.

In any event leaving your vehicle with the dealership and telling them to carry out whatever the vehicle requires, is probably not advisable if you want to avoid nasty shocks. It often comes down to a matter of opinion as to what a vehicle requires; there have been cases of the owner, on collection of the car, being told that the air conditioning gas had been found to be low, so they re- gassed the system, at a cost of 180 British Pounds, when the owner was quite happy with the way it was working previously. If indeed the system does require re-gassing it will usually prove a lot less expensive to call in a private company.

In summary if your vehicle is on contract hire or personal contract hire certainly consider the inclusive of maintenance option, it can have its advantages; some will for example cover damaged tyres and some have the option of an immediate relief vehicle in the event of a breakdown. However do look at the servicing intervals and the mileage the vehicle is estimated to do over the term, this can be an important consideration when deciding if it is worthwhile. If you do not have a maintenance option consider the possibility of having all the additional work carried out where it will be less expensive to do so.

About The Author

For more information about contract hire, lease purchase, finance lease or vehicle hire purchase in the UK please contact Bowater Price plc http://www.bowaterprice.com Tel - 01494 536 536.

By Gary Terrazas

Contract hire is a very straightforward and inexpensive way of running company cars. It couldn”t really be simpler you have fully budgeted costs over a fixed term, off balance sheet borrowing, without the complication of disposing of existing vehicles, when the time comes to renew company cars. Even maintenance can be included in the monthly rental. It is however important to avoid some of the pitfalls that can be encountered when choosing this route.

Firstly if the contract hire company is not one of the large and better know companies it is important to establish their policy with regard to the condition of the vehicle when it is returned at the end of the contract hire term.

Most of the established companies say that the vehicle must be returned in a condition that is deemed as fair wear and tear for the age and mileage of the vehicle, as set out in the BVRLA guidelines. It is important to establish that you are not dealing with a company that plans to profit from charging for work to be carried out on the vehicle that is not reasonably required considering the age and mileage of the vehicle. It also is important to have someone from your company present at the handover; one hears of cases of contract hire companies, charging for missing service records, when the hirer was certain they were in the glove box.

A contract hire agreement will be for a fixed term and there will be a specified number of miles the vehicle can be driven during that term, this will be the mileage that has been requested by the hirer. Sometimes it can be difficult to predict how many miles a vehicle is going to do and of course circumstances can change. It is therefore a good idea to check what the charge will be for excess mileage.

On occasions you will see a vehicle that appears quite inexpensive but has a higher than normal charge for excess mileage. Most companies are flexible and will allow you to renegotiate mileage, part way through the term it is worth checking that this is the case with the company you are considering. The whole idea of contract hire is that you have fully budget costs and finding yourself with a large bill at the end of the term, rather defeats the object.

It is also important to make the employee who drives the vehicle responsible not only for it’’s condition but also for ensuring that the vehicle is serviced at the appropriate service intervals. It should not be the company that has the responsibility of making sure the vehicle is serviced on time; the driver of the vehicle will after all see the appropriate warning come up on the screen and should advise the company accordingly.

Failing to service the vehicle within the designated time can have serious consequences; it can invalidate the warranty leaving the company exposed to the cost of any further mechanical or electronic problems that the vehicle may encounter. This again defeats the object of fully budgeted fixed costs.

There are cases of employees continuing to drive a vehicle for many miles after an engine warning light has appeared. It’’s difficult to understand the thinking behind this action. One possibility is that perhaps they believe that they can take the vehicle into the dealership some time later and say that the warning light has just appeared; electronics these days are very sophisticated and very often the dealership, with the help of it’’s diagnostic equipment, can see not only when the warning first appeared but also how many miles have been driven since.

This again is likely to invalidate the warranty, the same can apply if you fill a diesel car with petrol and then drive it. Under those circumstances you will be responsible for the cost of repairing anything else that may go wrong with the vehicle for the remainder of the contract hire term. Cars tend to be very reliable these days so you could be lucky but contract hire is not about being lucky, it’’s about knowing where you stand financially.

There is potentially another problem should this happen and that is that if the contract hire term of the vehicle is less than three years, it is unlikely that the contract hire company will be willing to take the vehicle back without looking for some form of compensation. This is because most vehicles have a three-year manufacturers warranty and they will then be selling a vehicle without the remaining warranty. This can significantly affect the value of a second hand vehicle.

To summarise check the contract hire company’’s policy with regard to their requirements for the condition of the vehicle at the end of the contract hire term and also the charge for excess mileage. Make the employee responsible for the condition of the car and for advising the company when a service is due. It also seems sensible to make them aware that they are responsible if they do anything that invalidates the vehicle’’s warranty. This should help the company to enjoy the fully budgeted costs of contract hire.

About The Author

For more information about contract hire, lease purchase, finance lease or vehicle hire purchase in the UK please contact Bowater Price plc http://www.bowaterprice.com Tel - 01494 536 536.