Do companies need a Contract Hire and Leasing broker?
There are now many thousands of brokers in the UK offering various financing packages including, Contract Hire, Personal Contract hire, Lease Purchase and Hire Purchase but what exactly is the benefit to a company when using a broker?
The benefits can be quite considerable, however as this is an unregulated industry it can be advisable to exercise caution when choosing a broker. It is important to ensure that they are well established and financially stable.
One example of where a company can benefit from using the services of a broker, is buying power; a broker that buys a considerable number of vehicles on behalf of its clients, is often able to secure greater discounts than if a company went directly to a dealership to purchase their vehicles.
There is also the consideration of having the fleet managed by a company that is able to supply any make or type of vehicle, rather than the client having to deal with a number of different dealerships and attempt to negotiate with each one individually.
A broker can be in a position to carry out a regular review of a client's vehicles and keep them up to date on any special deals or discounts that are on offer, and any model changes that are due. They can also assist the client in choosing the most effective financing method for their particular circumstances.
Licence checking is facility that is available, from brokers that offer a comprehensive service. There are still many companies today that simply take a photocopy of an employee's driving licence and believe that they have complied with the law. There have been many cases where licence checks have revealed convictions that were undeclared, including drink driving and even cases of employees driving company vehicles whilst disqualified. It is the company's responsibility to ensure that their company vehicles and drivers comply with the law.
Should for example such a driver have a serious accident, it is the company and its officers that can be held liable, if it can be proved that there has been negligence. Furthermore it is unlikely that the insurance company would meet the claim under those circumstances. Imagine if someone were killed in the accident; there are very few small to medium sized companies that could weather the financial impact of such a claim. Many companies have opted for giving the employees a car allowance in order to reduce their liability in this area but ironically it can often make matters worse; it is much easier to ensure that a company vehicle is properly maintained and roadworthy, than it is an employee's own car.
Dealing with an experienced and efficient broker for Contract Hire and other forms of car finance, can save money and take away a lot of the day-to-day worries of running company vehicles. There is no doubt that running company vehicles has become more difficult and more of a responsibility in recent years. Often companies that have a number of vehicles but cannot justify the cost of a dedicated person to look after the fleet. Employing a fully trained and experienced person in this role can be expensive.
There are many companies with fleets of 1500 vehicles and above that use a broker, in addition to their dedicated staff. It is however those companies that have fleets of up to 50 vehicles, below which it is generally accepted that it is not viable to employ full time member of staff, that benefit the most from using the services of a broker.
Should you have any queries or questions regarding Licence Checking, Contract Hire, Personal Contract Hire, Lease Purchase or vehicle Hire Purchase, please do not hesitate to contact us. Bowater Price plc 01494 536536. www.bowaterprice.com.
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Bowater Price plc - Personal Contract Hire and Vehicle Hire Purchase