Business Contract Hire otherwise known as Contract Hire is a fixed term agreement based upon a predetermined annual mileage, with or without maintenance and servicing options.

Contract Hire removes the risk of depreciation and regularizes cash flow with a fixed monthly payment including road fund licence.

Additional services can be arranged to include vehicle servicing and maintenance, tyres and exhaust replacements, breakdown assistance, and relief vehicle facility. The ability of the Funder to reclaim all of the VAT on the purchase price in turn reduces the monthly payment in comparison with a purchase plan.

Benefits of Business contract hire:

• The rentals are tax deductible
• Initial payment requirements are generally low
• Pre-determined costs and fixed term smooth out cash flow
• Accurate budgeting with minimal administration
• Contract Hire can include maintenance and vehicle servicing
• No purchasing or disposal hassles
• No risk of depreciation
• The contract hire company is able to reclaim all the VAT of the purchase price of the vehicles, which is reflected in much lower overall costs.