With a contract hire agreement you pay one fixed monthly rental
incorporating every conceivable cost except insurance and fuel.
Contract Hire is ideally suited to VAT registered businesses that
will benefit from the security of maintenance and depreciation
risks taken on by the leasing company and not left with your business.
Although Contract Hire is a fixed agreement for a period of between
12 and 60 months with a pre agreed mileage, tailored packages
can be compiled to include all or some of the following:
Servicing,
Maintenance and Repairs
Full European Breakdown Assistance
Replacement Vehicle in the event of accident or breakdown
Mileage amendments to account for previously unknown circumstances
(either increased or reduced) and associated alterations in
ongoing monthly rentals
Extensions of contracts
Insurance
GAP Insurance.
The benefits of a contract hire agreement are:
Minimal initial outlay, typically 3 months rentals.
Fixed cost allows accurate budgeting.
Elimination of Residual Value risk.
Elimination of maintenance risk (if selected).
Off balance sheet funding.
Minimal administration.
Rentals offset against taxable profits (subject to IR legislation).
Major fleet discounts incorporated within the rental.
Recovery of up to 50% of VAT on car and 100% on commercial
vehicle rentals, and 100% of the VAT on maintenance fees, if
VAT registered.
Overall peace of mind, so that you can focus on your core
business.
