What Is Contract Hire?
Contract hire is a finance solution available to sole traders, partnerships and limited companies. If your company is VAT registered then you may claim back 50% of the VAT for the Finance Element. Contract Hire is a fixed monthly rental allowing you to budget easily for the duration of the contract leaving you to focus on your business and avoid the hassle of owning a vehicle.
Benefits of Contract Hire
- Helps Cash flow - Low initial outlay (Normally just 3 Months in Advance)
- Fixed Rentals - Budget Accurately with fixed regular payments. Makes budgeting easier
- Flexible- With Contracts variable from 1 to 5 years and contract mileage to suit you (Caps apply)
- Low Risk- No depreciation risk to you or hassle on disposal. Simply hand the car back.
- VAT Efficient- 100% VAT may be recovered on Commercial Vehicle Leasing and Fixed Cost Maintenance (50% VAT recoverable on car leasing finance payments)
- Tax Efficient- 100% Tax Relief on a range of Contract Hire Vehicles
- Hassle Free- Road Tax normally included for the Full Term *Some special deals differ.
- Maintenance - Fixed Cost Vehicle Maintenance is normally an option
How Does Contract Hire Work? (CH)
Your company hires a vehicle from a selected lease provider for a specified period of time. Your company makes regular monthly payments to hire it. The leasing company retains the ownership of the vehicle and is responsible for the associated risks such as depreciation. At the end of your contract period, the vehicle is returned to the leasing company and you can then consider your new requirements going forward.