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. We'll handle the disposal/re-sale of the vehicles, leaving you to choose which new vehicle you want to upgrade your fleet with next.
Why choose contract hire?
- Fixed monthly rentals
- Enables you to budget accurately
- No need to worry about depreciation
- We take care of sourcing and ordering the vehicles for you
- Maintenance packages available
Get the right vehicles
We are able to utilise our purchasing power to obtain any make or model of car.
We also have access to a panel of funding suppliers to get the best price for you.
Keep your fleet moving
We can take care of everything from maintenance and breakdowns to end-of-lease collection. This will help you to minimise downtime, increase the mobility of your fleet, take care of your drivers and keep your costs down.
Get better value
Free up capital in your business with simple monthly fixed costs plus tax and accounting benefits, as you can recover up to 100% of the VAT on the finance rental if the vehicle is used for business only.
How to get in touch
To find out more about our Fleet Funding options call 01332 267 389 or email the team.