Contract Hire
What is Contract Hire?
Contract Hire is an agreement where the Customer pays a fixed monthly instalment for using the car for a specified time period and an agreed mileage. The monthly instalment is calculated taking into consideration, cost of the vehicle, period of use, mileage and depreciation during the said period.
Who can benefit from Contract Hire Option?
Contract Hire option is beneficial for personal lease as well businesses such as Sole traders, Partnerships, Limited Companies or PLC.
Contract Hire is popular among those who love to use expensive cars but can’t afford to buy one. It is also widely used by VAT – registered as well as non VAT – registered companies.
Prominent Features of Contract Hire
Flexible Contracts: Contract Hire Agreements can be tailor made to suit customer requirements.
Low initial deposit: Initial deposit is equivalent to 1 - 3 months instalment amount.
VAT recoverable: VAT registered customers can reclaim 50 – 100 % of VAT charged on monthly instalment; depending on whether the car is used for business or private purposes.
Economic Monthly Rental: Monthly instalment is lower because companies can reclaim the VAT amount of the vehicle.
Ownership without Risk: Customers can enjoy ownership without having to worry about depreciation, maintenance and disposal problems.
Off Balance Sheet: Customers can categorize their lease as 'off balance sheet' if they desire.
Optional Maintenance: Customers can select one or more features offered in the maintenance and service packages as part of the monthly instalments.
Rentals allowable against tax: Instalments can be offset against taxable profit - subject to rules and regulations.
Car Leasing UK’s qualified staff will guide and advice you on all aspects and information about Contract Hire. Call us now if you require any further details of Contract Hire or a no obligation quote.
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