1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136 
Shop around without being discouraged by a refusal
Page 57
If you've noticed an error in this article please click here to report it so we can fix it.
One finance house told me that some of their number are not short of the capital to underwrite these leases but of the profit to take advantage of capital allowances themselves. Another such company intimated that there was enough capital available and that prospective lessees should have no hesitation in approaching finance houses.
It appears, therefore, that the answer is to shop around and not be discouraged if one finance house refuses a lease.
Some will even agree to buy an existing fleet and lease the vehicles back to their original owner — an arrangement ,which also has appeal particularly to the own-account operator, for in this way immediate capital becomes available for any purpose without interest charges.
Thus, if a way of obtaining the use of vehicles without imposing on existing borrowing powers or incurring a charge on other assets appeals, then try finance leasing.
Before doing so, however, it is as well to consult the company accountant to ensure that the financial position of the company is likely to be acceptable to the finance company.
Renting and hiring vehicles is familiar to most operators and needs no description apart from defining them as usually short-term arrangements, while contract hire tends to be on a longer-term.basis usually exceeding one year.