Contract Car Hire

A fixed term agreement based upon a predetermined annual mileage, Contract Car 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 contract car hire:

• The rentals are tax deductible
• Initial payment requirements are generally low
• Pre-determined costs and fixed terms smooth out cash flow
• Accurate budgeting with minimal administration
• Contract car hire can include maintenance and vehicle servicing
• No purchase or disposal hassles
• No risks 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 cost

Why lease rather than buy?

With vehicle prices continually rising and the financial value of used vehicles falling, the fiscal cost of owning a car is still increasing. It is commonly known that there is little benefit in purchasing most new cars outright; due to the depriation of the asset; thus more and more businesses look for a better financial solution to vehicle acquisition.

What is a lease?

A lease gives you the rights to use a vehicle on pre-agreed terms, but no rights to the title. The risk remains with the finance company.

Benefits of leasing:

• Low initial rentals
• Fixed term and rental costings
• Flexible profiles
• Accurate budgeting with minimal administration
• Lower rentals ( based on depreciation only)
• Minimises tax liability
• Improves cash flow
• No disposal of vehicle or risk of depreciation