Business Contract Hire...
Contract Hire – also known as an Operating Lease,
is a great risk free way for any business or private individual
to run their vehicle(s). With Contract Hire you only pay for use
of the vehicle not the whole cost, essentially what you are paying
for is depreciation and interest. Contracts are usually for either 2,3,4 or 5 years
(rule of thumb - the longer the period the lower the monthly payment – however
occasionally there are exceptions) and they are tailored to an anticipated
total mileage over the chosen period. Payments are fixed for the contract period
and would normally be fully inclusive of all maintenance costs
although this is optional.
Payments attract VAT and VAT registered businesses can reclaim 50% of the finance
proportion of the rental and 100% of the maintenance proportion. At the end of the
contract the vehicle is simply handed back. Provided the total agreed mileage hasn’t
been exceeded and the vehicle is in good condition and correctly serviced then there
are no further costs.
- Risk Free – all the risks of depreciation and maintenance (if chosen) are borne
by the Leasing Company
- Fixed Cost – Monthly payments are fixed for the contract period
- Minimised Cash Flow – As you are only paying for what you use then cash outflow
is kept to a minimum
- Tax Efficient – Rentals for vehicles with a CO2 of less than 160g/km are 100% allowable
for tax purposes. Above 160g/km, 85% of the rental is tax allowable.
- Time Efficient – Removes all the hassles associated with buying, selling, managing
and maintaining a vehicle.
- Buying Power – We have tremendous buying terms with many manufacturers which are
passed on to you and are reflected in the much reduced monthly payments you make.