If your business usually buys company cars with cash, a bank loan, or through a traditional Hire Purchase scheme you could find that Contract Hire is the most-effective way to purchase your new vehicle. Contract Hire enables you to reclaim at least 50% of the VAT on every payment you make and lets you keep the funding off your balance sheet.
Contract Hire enables you to release the capital you would have spent on the outright purchase of a vehicle into your business and allows you to opt for a low deposit and the option to have an all-inclusive monthly rental. The Low costs attributed to Contract Hire are because the financial lender is able to reclaim the VAT on a new vehicle passing the savings on to your business in the form of lower monthly rentals, which are fixed throughout the agreement.
Because you have more capital available you can choose from a wider range of vehicles and will often be surprised at the models and manufacturers available which will meet your company budget.
You have the option to purchase a maintained package which will cover your vehicle for all its servicing and repairs, your annual Road fund Licence is also taken care of so you have less administration to do.
Contract Hire can provide total vehicle management as well as being ultra cost effective giving you the widest choice of vehicles for the lowest capital outlay. Contract Hire also gives you the piece of mind that at the end of the agreement you simply hand back the vehicle and take out a new one.
Key Benefits
- Low deposit.
- More capital available for your business.
- Flexible deposit terms.
- Vat on rentals reclaimable.
- Low monthly payments, particularly on prestige cars due to strong residual value.
- Fixed costs.
- Off balance sheet borrowing.
- No time consuming disposal.
- Choice of rental periods.
- No depreciation risk
- No final payments.
- Maintenance on cars can be included.
