Due to company funded vehicles for business or perks the UK Contract Hire industry is arguably the best managed and most successful worldwide.
BVRLA
There is a representative body to the industry and that is the BVRLA (British Vehicle Rental and Leasing Association – which set the standards for operational quality and seek to look after the interests of both the daily hire and contract car leasing sectors.
There are close to 2 million vehicles with BVRLA membership under management in the UK.
You can find brokers that will sort out contract leasing for you, they will find the lowest cost leasing supplier for you (make and model) and they will add a margin which will be added to the customers rental. However 85% of all automotive purchases are now researched online and this figure is likely to keep on growing and growing.
The companies that rent these vehicles to business users usually include a repair and maintenance plan for the period of the Contract Hire. The company renting the vehicle will never own it, the vehicle will always remain property of the Contract Hire Company.
Contract Hire is available to Limited Companies, Sole Traders and Partnerships, it is an extremely popular choice for companies that are VAT registered. Over 40% of VAT registered companies choose this method of funding. Reduced administration and Tax advantages help the businesses meet their vehicle requirements on their budgets.
Contract Hire Advantages
Taxation and Finance Benefits
Monthly budgeting remains accurate.
It can improve cash flow.
Contract Hire has fixed interest rates.
It is off the balance sheet.
It is allowable against taxable income.
On monthly rentals the VAT is recoverable.
No risks with regards to depreciation of the vehicle (This remains with the Contract Hire Company.
Benefits of Vehicle Running
You will always have ongoing advice and support.
You will receive reduced administration.
You do not have to worry about the vehicle disposal (This will remain the problem for the Contract Hire company).
For the duration of the contract vehicle excise duty will be paid (This is the Road Fund Licence that will be provided).
You may take up an optional maintenance package, optional Breakdown Rescue cover, Optional GAP insurance and incase of a breakdown you may also take out optional replacement vehicle cover
GAP Insurance is a safety method incase the vehicle under contract is declared a write off, this provides cover for the shortfall between the insurance value and the outstanding finance. It is also known as Lease/Loan payoff coverage. So if it comes to the point where the insurance company come to the decision that the vehicle has become a write off the remaining finance you owe will be covered.
In order to generate new business it's essential to market your business and certainly this can be a very costly business. Advertising is seriously expensive and in my mind it works best for those already with an established brand because it's about recognition and repetition, so unless you're already in the league of Coca Cola it's probably not a good solution.
Business networking is not about a closed shop where everyone gives each other work it's much more powerful than that. It's fundamentally about the act referring business to people that you have grown to know, like and trust, and for them to do the same for you. Understanding how to give a quality referral is an art itself and something that I cannot cover today so for the time being let's just consider the benefits of business networking.
It is not a well known fact but 70% of new business that your company gets is through word of mouth. Networking allows you to formally explain what your business is about and as fellow networkers get to know you so you will naturally start to win new sales leads because people like to pass business to people that they know.
Simply the act of attending a networking event will raise your profile especially if you network on a regular basis. Remember what I said about advertising ? recognition and repetition, attending a regular networking event achieves this.
Not only do you have the opportunity to present your business, you also get to meet with a lot of business people from other walks of life that will inevitably be able to help solve some of your problems. And you will be able to do the same ? it's all part of the relationship building process and at the end of the day it's this relationship that counts when recommending someone's services.
You'll also get to know an awful lot of people that will be able to help you when you have a problem. Have you ever picked up the yellow pages and looked for a particular service? How do you choose? It really is hit and miss. By getting to know reliable contacts who can provide you with what you want and who can be trusted is worth so much in terms of your time and money.
Likewise, if there's no one in your network who can help, the chances are that someone knows someone who can and will recommend them. Suddenly you find that your business is moving forward at a much more rapid pace. Your confidence will soar!
Sharing experiences is also part of the game. Just talking to people about their experiences, their goals and their problems will stimulate lots of new ideas and open your mind to new opportunities. All of a sudden you have a completely new approach to doing something or even a new business venture that you may never have otherwise thought of.
Last but not least it's amazing how much satisfaction we all get from helping others.
There are many business networking techniques to learn in order to make the most of this style of marketing but once you've understood the basics, give it a little time and I'm sure that you'll soon understand the true power and benefits of networking.
Both Daniel Owen & Louise Yates are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Daniel Owen has sinced written about articles on various topics from Management, Cars and computers and the internet. About Author:Daniel Owen writes about . To know more about. Daniel Owen's top article generates over 22200 views. to your Favourites.
Louise Yates has sinced written about articles on various topics from Sales and Negotiation, Family Concerns and Management. Louise Yates shares ?>business networking tips and advice for word of mouth marketing, generating refe. Louise Yates's top article generates over 74000 views. to your Favourites.