We are able to introduce you to finance sources to assist you in your purchasing – The range of finance products include Hire Purchase, Finance Lease, Operating Lease and Contract Hire, most of which can be tailored to suit your needs – Please contact our sales department for details.
Business contract hire is a popular long-term vehicle rental agreement suitable for sole traders, partnerships and limited companies.
Business Contract Hire is commonly referred to as vehicle lease and allows businesses a fixed payment method for the use of a vehicle/machine for a term of normally between 12-48 months. The payments attract VAT of which for cars 50% and for commercial vehicles 100% of the finance element is reclaimable, 100% of the VAT for any maintenance payment is reclaimable. The rental payments are also classed as a true business expense so can be wholly offset against corporation tax.
The benefits are fixed monthly payments with no disposal risk but reasonable care has to be taken of the vehicle and also there is an obligation to remain under the stated mileage at the contract inception or the finance company will levy a charge for additional losses.
