Contract Hire for Business Users
Funding Options
Contract Hire for Business Users
There are many advantages both operational and financial with Contract Hire.
Principal benefits include:
- Low initial payment.
- All scheduled servicing, maintenance, tyres can be included, effectively ‘ring-fencing’ running costs.
- Servicing and Breakdown support nationwide.
- Fixed rentals allow for accurate budgeting.
- Flexible terms – variable contract duration and mileage.
Contract hire removes depreciating assets from your company’s balance sheet, eliminating the depreciation risk and the need to arrange disposal of vehicles.
- Minimal administration required
- If VAT registered, you can claim back 50% of the VAT on the finance element of the rental and 100% on maintenance element.
In some situations Contract Hire may not be appropriate.
Typically commercial or specialist vehicles, can have a hard or extended fleet life, or do very high mileage.
The flexibility of a Finance Lease may be more appropriate giving you better control over the timing of use on your fleet, and still benefiting from substantial fleet discounts calculated into monthly payments.
