Contract Hire is a very popular choice for VAT registered businesses who wish to take advantage of a low initial deposit and have the option of a fixed monthly budget with a full maintenance package built into the agreement.

This would leave only fuel and insurance to fund separately, even road fund licence is included for the contractual period.
With this VAT beneficial package, one regular payment could cover supply, rental, maintenance, depreciation and disposal for a pre-arranged period and mileage.

Currently 40% of company vehicles are funded by this method.

Contract Hire
The Benefits

• Low initial outlay
• Leaves more capital available for your business
• Fixed monthly costs with the option of a full maintenance package
• Flexible rental plans
• Off balance sheet borrowing
• No depreciation risks
• No disposal problems
• Road fund licence included in the rentals
• Very little administration
• Vat reclaimable on the rentals (50% if any private use, 100% if not)
• Vat is fully reclaimable on maintenance costs, when included.