Stockport based DSG Auto have launched a new shorter-term contract hire deal, perfect for employers taking on new starters.
DSG often get asked by their customers if they take a new car or van on contract hire for a new person and it does not work out, can they hand it back? The answer is yes, but typically the termination costs associated with ending the contract is 50% of the outstanding rentals, for example:
Term: 36 Months – Monthly Rental – £300+VAT | Remaining term – 30 Months | Termination cost – 30 x £300 / 2 = 4,500+VAT
You may be able to re-use the vehicle if you can recruit again, but this may take up to 3 months to do, so whilst this is going on the vehicle may be sat around cost in you money.
So, what is the solution?
Well you could buy a used car and use it for 6 months whilst the new employee is in probation, then after that sell the car and then order the new lease car, this can be time consuming and you will no doubt lose money on the sale price, unless you bought it very cheap. The other option often used is daily rental, you will pay approximately £30-40 a day for a decent car, this soon adds up over six months.
The solution is to take a short-term contract hire deal, we have a selection of great vehicles available from £13.69+VAT per day for a Volkswagen Golf, or £383.32+VAT for 28 days hire. See matrix for pricing info, this is a summary;
- Minimum term 3 x 28 Days hire.
- Pro-rata mileage rates from 20,000 to 40,000 miles per annum.
- Full maintenance, tyres and servicing included.
- Breakdown cover included.
- Most stock is brand new, maximum age when delivered will be 12 months old.
- Free collection and delivery.
- Business users only (no personal leasing).
- Contract from 3 months up to 23 months.
- Cars and Vans available.
- Quick turnaround – Appx 14 days.
- No terminations fees after 3 x 28 day hire.
- Customer insured.