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Breaking the Shackles of Contract Hire

Now for the first time if a company vehicle becomes surplus to requirements there is an easy and cost effective means to dispose of it, without the inherent penalties imposed by finance companies.

Transfer Contracts Ltd, based in Stoke-on-Trent, has launched a national initiative to help companies who find themselves, for whatever reason or circumstance, needing to terminate their contract hire/leasing agreements.

Contract arrangements are generally inflexible a should a customer wish to terminate their agreement early, then the penalties can be high. Finance companies can always offer a product that will take any eventualities into consideration, but the premiums will be significantly higher.

Considering this and the fact that Contract Hire/Leasing cars account for some 1.8 million vehicles on our roads today, Mike Lloyd, Managing Director of Transfer Contracts, decided to find a solution. He also had his own customers who wanted to get out of their agreements and had been approached by other companies only wanting to commit to short-term contracts.

Mike Lloyd explains how it all works, "We have devised a central UK database that will detail surplus cars. This will then be used to help find suitable vehicles for those firms only requiring short-term contracts. They will, in effect, take over the contract agreement of the previous owner and only pay the same rate.

"This way everyone is happy. Those companies wishing to dispose of vehicles can now do so at a fraction of the cost (one month's rental) with no effect on their credit rating. The only option previously for firms looking for short-term agreements would have been car hire, which is an expensive alternative. For the leasing companies, when you consider that it can take up to six weeks from repossessing a car to putting it into auction, this initiative is trouble-free and will save them both time and money and maintain customer satisfaction."

This initiative through Transfer Contracts Ltd is fully supported by major finance companies.

Press Release May 2000

Have you ever hired a car for an employee only to find they move on leaving you with an unwanted contract - often with months to run?

Well help is at hand. A host of medium sized Manchester firms faced with a garage full of contract vehicles have found help from an expert in the car hire jungle.

Transfer Contracts Ltd has launched a national initiative which for the first time will offer businesses short-term vehicle contract hire and leasing agreements easily and cost effectively. The new scheme will help companies looking for short term agreements to find suitable vehicles from a comprehensive national register.

The new initiative was devised by managing director, Mike Lloyd. Companies who only wanted to commit to short term contracts had approached his contract hire company on a number of occasions. He also had customers who wanted to get out of their current agreements because, for various reasons, their vehicles had become surplus to their requirements. Mike Lloyd explains how it all works. "We have devised a central UK database that details all surplus cars which in turn is used to help find vehicles for those firms only requiring short term contracts. For the leasing companies, this initiative is trouble free when you consider that it can take up to six weeks from repossessing a car to putting it into an auction."

Manchester Evening News - November 13, 2000

Company's Initiative to Ease Cost of Leasing

A Stoke-on-Trent vehicle hire company has launched a national initiative to help companies terminate their contract hire and leasing arrangements.

Transfer Contracts, which was formed earlier this month from parent company Central Contracts, has set up a national database to help firms combat the inflexibility of many contract agreements.

Managing director Mike Lloyd said the Trentham-based company offered businesses an easy and cost-effective means of disposing of surplus company vehicles without being penalised by finance companies.

He said: "We have devised a central UK database that will detail surplus cars. This will then be used to help find suitable vehicles for those firms only requiring short term contracts. They will, in effect, take over the contract agreement of the previous owner and only pay the same rate."

"This way everyone is happy. Those companies wishing to dispose of vehicles can now do so for one month's rental, a fraction of the cost, with no effect on their credit rating."

"The only option previously for firms looking for short-term agreements would have been car hire which is an expensive alternative."

This initiative is trouble free for the leasing companies and will save them both time and money and maintain customer satisfaction.

Stoke Sentinel 31 May 2000

Simpler Transfer Methods

A new company has been established to help companies dispose of fleet vehicles that still have outstanding contract hire agreements.

In normal circumstances these sorts of agreement are generally inflexible and should a customer wish to terminate their agreement early, the penalties can be high.

In a bid to overcome these high fees, Transfer Contracts of Stoke on Trent has devised a central UK database that will detail surplus cars which can be used by firms requiring only short term contracts.

They can then take over the agreement of the previous owner and only pay the same rate

Managing director Mike Lloyd, who came up with the idea for the database, said: "This way everyone is happy.

"Those companies wishing to dispose of vehicles can now do so at a fraction of the cost (one month's rental) with no effect on their credit rating.

"The only option previously for firms looking for short term agreements would have been car hire, which is an expensive alternative.

"For the leasing companies, when you consider that it can take up to six weeks from repossessing a car to putting it into auction, the initiative is trouble-free and will save them both time and money and maintain customer satisfaction."

Bournemouth Evening Echo June 6, 2000

Contract hire seems to be the perfect way to source and finance company vehicles, but what happens if the vehicle becomes surplus to requirements part way through the agreement period?

That's the problem that Stoke based Transfer Contracts hopes to address with a central database designed to pass on the contracts to those who only need short term vehicles.

The idea is to allow companies to get rid of vehicles early without being hit by heavy penalty clauses.

Edinburgh Evening News 30 May, 2000