Contract Hire can run from 24 to 60 months and gives businesses a fixed monthly cost for the duration of the vehicle lease.
You have a choice of a Maintained Contract (full repair and maintenance, tyre replacement and breakdown cover) or a Non-Maintained Contract. Either way, the Road Fund Licence is included for the whole term.
At the end of your contract, you can pick up a new vehicle and hand back the old one without any of the usual worries of disposing of it or the risk of losing money on its used value.
VAT registered businesses can reclaim 50% of the VAT on the rental cost of passenger
cars and 100% of the VAT on commercial vehicles; 100% of the VAT on the service and
maintenance element can also be reclaimed.
- Minimum capital expenditure which helps your cash flow
- No depreciation costs
- Fixed monthly costs which can be offset against profits
- Ongoing advice and support
- Road Fund Licence included
- Optional Maintenance package
- No potential losses on disposal of asset at the end of your term
- “Off Balance Sheet” borrowing can improve your gearing ratio (your assets to borrowing ratio) which could improve your future borrowing ability
- Early termination can be expensive
- Excess mileage charges are payable if you exceed your stated mileage
- The vehicle must be returned in a well maintained condition to avoid any charges for damage over and above “Fair Wear & Tear”
- You must have fully comprehensive insurance
- You will have no option to own the vehicle at the end of the contract