Business car leasing and contract hire

Contract Hire

Not to be confused daily rental, this product is a popular way of financing the depreciation on your company vehicles while not utilising the capital or borrowing capability of your business.

The technical term is off balance sheet finance. It always includes Road Fund licence for the term and can include full maintenance, servicing and replacement tyres if required, thereby ensuring fixed costs for the whole life of the vehicle.

At the end of the contract, the vehicle is returned and alleviates any disposal risk to you or your company. You simply choose your next vehicle. Contracts can range from 24 to 60 months with mileage allowances up to 50,000 miles per annum. VAT is reclaimable on rentals at varying rates dependant upon usage.

Contract Purchase

This method of funding is an alternative for companies who cannot fully reclaim VAT. The big difference between Contract Purchase and Contract Hire is that you have the opportunity to purchase the vehicle at the end of the contract. If you do not wish to buy the vehicle you can simply return it to the finance company.

Other benefits such as Maintenance, AA/RAC can be included if required.

There are also alternative methods of funding vehicles such as Hire Purchase, Finance Lease and Lease Purchase.  Please feel free to call us to discuss further if required.