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 2-5 years.
This offers many accounting and operational advantages. Fixed monthly rentals enables your business to budget accurately and without having to worry about 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% of the rental on vehicles with higher emissions.
Contract Hire is also tax-efficient as you can recover 50% of VAT on the finance rental if the vehicle is used both privately and for business use, or 100% of the VAT if the vehicle is used for business 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'll take care of sourcing the vehicles for you and, once your contract hire term has ended, you can hand the car back to us and we'll handle the disposal/re-sale of the vehicle, leaving you to simply choose which new vehicle you want to upgrade your fleet with next.
Get the right vehicles for your fleet, with a solution tailored to your business
As part of the UK's leading automotive group, we're able to utilise our purchasing power to get you any make or model of car and, as we're not bank or manufacturer owned, we can access a panel of funding suppliers to get the best price for you.
Increase mobility and keep your fleet moving
We can take care of everything from maintenance and breakdowns to end-of-lease collection, to minimise downtime and reduce your costs.
Get better value
Free up capital in your business with simple monthly fixed costs plus tax and accounting benefits.
Testimonial: Robert Heath Heating
"Last year the Directors recognised that we were not managing our Fleet efficiently and, following a review of the market, we selected Pendragon Vehicle Management as our external Fleet Management partner. We have found the "can-do" attitude of the Pendragon team to be wholly positive.
Managing our fleet presents a challenge for several reasons and initially their input was very much of a fire-fighting nature, but as the relationship has developed, they are now providing strategic advice, as well dealing with day-to-day fleet management issues.
The latter includes booking vehicles in for services; dealing with breakdowns and unplanned downtime; moving vehicles around between engineers and assisting us with planning for contract hire returns and new vehicles.
As our relationship continues to develop in a positive manner, we look forward to working with Pendragon for many years to come."
Business Development Director, Robert Heath Heating
How to get in touch
To find out more about our Fleet Funding options call 01332 267 389 or email the team.