Flexible Contracts (Mileage, Term, Length)
Optional Maintenance Packages
Contract Hire Removes Depreciating Assets
Settled Monthly Cash Flow
Motoring with Fixed Costs
Claim Back 50% of Value Added Tax
Business Contract Hire
Business contract hire is a form of vehicle leasing that is most suitable for business owners, sole traders, partnerships and limited companies.
Much like Personal Contract Hire, with Business Contract Hire you will pay for the use of the vehicle during the agreed duration of your contract (usually 24, 36 or 48 months) by a series of fixed monthly payments. At the end of your contract you simply return the vehicle to the finance company.
Business contract hire is easily the most common form of leasing and is often the most advantageous. It allows you to change your car regularly and avoid the harsh risk of depreciation.
Key Benefits to Business Contract Hire:
- Fixed monthly payments
- Flexible terms from 24 to 48 months
- Fixed mileage allowance to suit your needs
- Little or no upfront payment options available
- No depreciation risk
- Road Fund Licence and Full UK Manufacturer’s Warranty included
- Maintenance can be included in your monthly fees to help spread the cost
- Claim back a % of the VAT
- Minimal capital expenditure
- Potential to offset rentals against corporation tax
- Hassle free motoring – just return the vehicle at the end of the contract and start a new agreement on a brand new car
There are lots of benefits to have a vehicle on a Business Contract Hire. You should also consider the following:
- There are variable contract lengths and mileage terms, and you should ensure that these will suit your circumstance and driving style
- There will be additional charges if you go over your agreed annual mileage limits
- All van manufacturers now run Euro 6 engines in their vehicles so CO2 emissions should not affect your lease (unless you are travelling in and out of London or other Low Emission Zones).
- If your vehicle is damaged (over and above ‘fair wear and tear’ as set out in your agreement), you will likely have to pay an additional charge
- You will not own the vehicle
- It is your responsibility to insure your vehicle (fully comprehensive) for the duration of the agreement. You can insure your business vehicle under your company insurance (as long as your lease is in your company name) and your staff can be added to your insurance so they will be able to drive the vehicles too
