Mercedes-Benz Car

Business Contract Hire

Business Contract Hire is a straightforward and cost-effective way of funding your fleet

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An Introduction to Business Contract Hire

Contract Hire is a vehicle funding method by which a business will pay fixed monthly rentals on a brand-new vehicle, over a period of between 2 and 5 years.

This offers many accounting and operational advantages. Fixed monthly rentals enable your business to budget accurately and alleviate the worry of deprecation. You can also deduct the full cost of finance rentals from taxable profits if the vehicle emits 130g/km of CO2 or less, or 85 percent of the rental on vehicles with higher emissions.

Contract Hire is also tax-efficient, as you can recover 50 percent of VAT on the finance rental if the vehicle is used both privately and for business use, or 100 percent of the VAT if the vehicle is used for business purposes only. If you take out maintenance with us on the vehicle, you can also recover all of the VAT on this part of the rental.

Operationally, we will take care of sourcing the vehicles for you and, once your contract hire term has ended, you can hand the car back to us. We will also handle the disposal/re-sale of the vehicle(s), leaving you to choose which new vehicle you want to upgrade your fleet with next.