Experts at Avis UK car hire have been analysing market data and found that rates had increased by between 5-10% over the past two years and will steadily increase throughout 2011 and into 2012.

Commercial Director Antony Ainsworth said:

“We found that the market as a whole has moved rates up as a consequence of rising input costs and a greater focus on the segments they serve. There is an element of starting to charge more realistic daily rates so we can maintain investment in the levels of service customers expect.”

ING Rentals concurred with the findings of Avis saying that they had found an increase in holding costs had added around 2% onto costs however sourcing costs saw an increase of up to 8% on automatic vehicles and an all around 5% increase on van hire. ING also revealed that the models that they have had the most difficulty sourcing were Ford Mondeos and Vauxhall Insignias.

Short term rental is a good option if you are wanting something for a few days, however for any long period of time you might be better off looking at contract hire deals, with this type of deal you can choose your vehicle rather than just a band or range. Contract hire deals also offer a degree of flexibility and can include servicing and repair costs.

As a business owner you are also entitled to claim back as much as 50% VAT back on the vehicles. Contract hire deals can also be broken down to a per mile cost,meaning that you know exactly how much you’re paying, this is especially handy if you are running a fleet of vehicles. For example the most popular rental brand currently on the market is Audi, a brand new Audi A4 could cost you as little as £125 per month if you are covering 10,000 miles or less. Obviously this is based on an economical driving style.

Source – Business Car

The new program will allow the existing 150 dealers nationwide to give business and fleet customers a hire quote tailored to individual needs.

Rental contracts will be available with or without maintenance but customers who select the maintenance package will have all mechanical and routine services included, replacement battery and exhaust systems when requried and the benefits of a ‘no quibble’  tyre replacement policy.

Suzuki have promised that rates will be competitive and based on the same terms that they offer their vehicles to other contract hire companies.

Ian Price, General Sales Manager for Suzuki UK said:

” Suzuki is an established brand in the UK offering a wide range of fun to drive and efficient cars, the launch of the new scheme allows us to reach even more customers than before; further developing our presence in the important Fleet and Business sectors.”

Despite this many experts recommend that customers either fleet or personal research and look at other contract hire sites to try gauge the market, and use the tools these sites offer. This can not only find the you the best price but also show you local companies, many of these sites also offer a rating system so you can get an indea of the quality of service offered.

Source – CarPages

In contract hire leasing, the individual (lessee) leases the car for a certain time period (1 year- 5 years) and makes fixed lease payments on a monthly basis. At the end of the lease term, the lessee has the option to return the vehicle or buy it. The lease payments will include VAT, which the lessee cannot reclaim. It is claimed back when the lease company purchases the vehicle.

The benefits of personal contract hire leasing include the flexibility to plan budgets more easily owing to the fixed monthly fee. The monthly installments will include the maintenance costs associated with the vehicle.

The lessee doesn’t have to worry about ownerships risks as the leasing company owns the car even during the contract term. The lessee does not have to deal with hassles related to vehicle disposal or sale, which is not the case when the vehicle is purchased. The vehicle’s depreciating value over time is also not a concern for the lessee.

As many people are glued to the TV. either wondering or hoping for a slid final solution so at last they know where they stand, only the bloggers and media guys seem to be busy.  This is an unprecedented day, where for most the company vehicle purchase  is down the list of priorities.

Contact hire is a general term of reference used for the system for leasing a vehicle from a car hiring company for a fixed period for individual as well as commercial needs. Listed below are some unique features that make leasing a vehicle a greatly beneficial option as compared to owning a car:

1.    Wide range of options – One of the best features of getting a vehicle through contract hire is that customers can choose from the latest and the best selling models available in the market ranging from city cars, SUV’s, sports cars to top end luxury brands.
2.    Cost effective choice – Compared to buying a car, leasing one is a highly cost effective choice as there are no heavy investments and loans involved, especially when it comes to high end models as customers need to pay for only a fixed amount of time through contract hire.
3.    Flexibility to switch models – Another great feature of availing car lease services, is the unique benefit of switching models as per your wish which is otherwise extremely   difficult if you own a car as you would have to deal with the hard task of reselling the previous vehicle before opting for a new one.
4.    No vehicle maintenance – By getting a vehicle through contract hire, customers do not have to bother with the hassles of vehicle maintenance as the car repair and upkeep services are taken care of by the leasing company.
5.    Easy payment options – Contract hire, also gives customers the benefit of easy payment options which can range from a small down payment to monthly installments based on the period of lease as well as the users choice.
6.    Secure transaction – When you opt for a vehicle through contract hire, you can be rest assured about the security of the transaction as the company will make you sign a legal contract and ensure that you are well aware of its terms and conditions before leasing a suitable car.

Contract hire is one of the smartest ways of meeting the lifestyle and driving needs of today’s times. So go ahead and lease a suitable vehicle and enjoy an amazing driving experience at a great bargain deal.

Summary – Opting for contract hire is a wise and cost effective way to meet the diverse driving needs in today’s times. Some unique features of leasing a suitable car include the wide range of options, cost effective deals, flexibility, no maintenance, easy payments and secure transaction process.

By guest blogger Atul

When a contract hire agreement is made the monthly payment is based on how mcuh that vehicle will be worth at the end of the contract. the more it is worth, compared with th intial buying price, the less the monthly payments should be. So the current high resellable prices has meant contract hire for some models is cheaper than ayear ago. Of course you should do your own research as there is still variable prices out there from dealerships and brokers.

It has been a bit hard for some of the car lease companies to get behind leasebam. They don’t like their prices to be next to others and even though there is no such thing as an exclusive lead, they still feel they want all customers to themselves. However price comparison websites, have proven that customers want more than this. They want choice and clarity regarding the prices. Leasebam offers this as a solution and soon many contract hire firms will be queing up to be on the site.

However Ling was a bit unsure about here figures so she never go the investment. Anyway she did have a good business idea regarding contract hire and her site lings cars is very Eastern and takes a while to understand.

She claims 20% of cars in the USA are bought using contract hire but only 1% here in the UK. However other sources suggest that up to 50% of cars are leased in the UK, although not quite the same thing, it is a simialr concept.

Watch Lings attempt to raise mony for her contract hire website here.

Anyway for some short term contract hire may be a solution ot get you by until you are buying a car or funds become available. You never know you may like contract hire so much you end up doing this full time.

In better words you just hire the Land Rover for a set duration and then hand the car back. Keep you money in the bank. You will have to do your sums to see if contract hire is right for you, but at least it should be a consideration.