When looking for a suitable Contract Hire Company on the Internet, the priorities will be different depending on whether you are a small company that only purchases vehicles infrequently, or a company that regularly buys vehicles; perhaps two to three or more per year.
The route that is likely to be suitable for the infrequent company buyer could equally apply to the individual looking to acquire a vehicle, except that for individuals the contract will be Personal Contract Hire, rather than Contract Hire. The main difference being, with Contract Hire VAT should be added to the advertised price, of which companies, partnerships and sole traders that are VAT registered can normally claim back 50% of the Contract Hire cost and if it has been included in the contract, 100% of the maintenance cost, whereas individuals cannot claim back VAT. Therefore the price advertised under Personal Contract Hire will include VAT.
If you search under Contract Hire in Google it will produce over 3 million results, many of these will be directories rather than the individual companies advertising. Some people complain that they feel there are now too many directories on the Internet. If you are happy using these sites, this is a good place to start. Some are much easier than others to use and will make it easy to compare different companies.
It is important to bear in mind that vehicle and Contract Hire broking is an unregulated industry so it can be advisable to exercise caution. Not all prices that are advertised on the Internet are actually available.
When comparing companies and prices, it can be far simpler to compare companies advertising 3 payments in advance followed by either 23 or 35 monthly payments, and 10,000 miles per annum. When you get to the stage of requesting a quotation from a company, this is when you can specify your required annual mileage, if it is not 10,000 per annum.
You will see companies advertising 6 monthly payments in advance, or more. Considering the time you will spend calculating the total cost to see if the monthly rental is more or less expensive, it is hardly worth the effort. Companies on the whole advertise 6 monthly payments in advance, in order to make the deal appear more attractive than it actually is; it allows them to advertise a lower monthly rental. There may be exceptions to this, but we have yet to see one.
If you see a vehicle advertised on the Internet and then when you make an enquiry the price is different from that which was advertised (providing of course you haven't changed the specification or the annual mileage) this may be your first indication that you are dealing with a company that is exploiting the fact that they are operating in an unregulated industry. The exception to this would be if for some reason your company doesn't meet the advertised funder's lending criteria and quotes have to be sought from a different finance company.
There are unfortunately brokers that do not deliver what they promise, often causing disappointment and disruption to companies when they fail to meet delivery dates and announce charges that were not declared at the time of ordering.
There is no reason for there to be a lot of small print on the reverse of a broker's order form, it is a fairly straightforward transaction. If there is, it would seem sensible to read it all. There are cases of brokers charging the equivalent of three months rental in the event of cancellation.
Once the industry is fully regulated, the brokers that are involved in these practices are not expected to survive. In the meantime there are lots of reputable brokers, their advertising will be clear and to the point and they will declare any charges at the outset.
For those who order vehicles infrequently, a not unreasonable approach would be to compare prices between the different companies advertising and choose the lowest quote. The only real downside with this approach is that it is likely that when you do acquire a new vehicle you will be dealing with a different company and you will need to try to make an assessment of the broker on each occasion. If the company you are dealing with is a limited company, it is far easier to make an assessment; one can see how long the company has been established, how financially secure they are and of course you can check if there are any county court judgements.
For a company that acquires new vehicles on a more regular basis the aforementioned approach could prove impractical; it would mean dealing with a number of different suppliers or brokers and the process could become very time consuming and disjointed. The main benefit in using a broker is that a company can have their vehicles sourced from just one company rather than having to deal with a number of different suppliers. Furthermore a broker that sources large numbers of vehicles from different manufacturers is likely to be able to secure higher discounts than a client who is negotiating directly with a main dealership. It is important to point out that it is not possible for any one broker to be the cheapest on every single manufacturer and model. It is however important to find a broker that is competitive across the range.
It is also important to find a broker that is well established, financially secure and reliable. They should have a straightforward quoting system, quote delivery dates that are achievable and have no hidden costs or charges. There are other additional services that the more established brokers can offer such as licence checking. This is vital to all companies nowadays, simply taking a copy of an employee's driving licence does not sufficiently protect the company.
The broker can also provide regular reviews for the client, keeping them up to date with any special offers or discounts that may be available. A reputable broker will inform the client if the vehicle they are considering is due a facelift or a model change; it is not unusual to see brokers advertising a vehicle on the Internet, where the new model is already out, without any indication that they are advertising the old model.
The broker that offers a comprehensive service will also be in a position to arrange other forms of financing apart from Contract Hire such as, Lease Purchase, Finance Lease and Hire Purchase.
