Contract Hire

Key Features

  • Facilities to fund a single vehicle or fleets of vehicles for business customers.
  • Off balance sheet funding as the vehicles are owned by the Finance company.
  • Fixed monthly cost for the life of the agreement.
  • Terms can be tailored to meet specific requirements over mileage and funding period.
  • Can include all the maintenance costs or just the finance element.
  • Road fund licence costs are included.
  • VAT is paid on the rentals and these can be recovered in full for a commercial vehicle and 50% for a car.

Key Benefits

  • Assists cashflow and budgeting by spreading the cost of vehicle ownership over the useful life of the vehicle.
  • A minimal deposit is paid, typically only 3 rentals.
  • A customer can benefit from the purchasing power of the Finance company with vehicle prices significantly discounted along with associated maintenance costs.
  • Rentals are offset against taxable profits which could reduce your tax liability.
  • No potential to lose money on disposal at the end of the contract as this is at the Finance company’s risk.
  • Fleet management capability assists companies when running fleets of vehicles.

 

For Further Information Please Contact Your Local Finance Specialist