Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts range from 12 to 60 months and are tailored to the businesses requirements.
The Contract Hire Company reclaims the VAT on the original purchase, which reduces your monthly rentals (which are + VAT). Contract Hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use, no exempt turnover and not being on the Flat Rate VAT Scheme).
On contracts with maintenance the VAT on the service element is 100% recoverable. One of the major benefits is that there are no disposal worries as the future value is underwritten by the leasing company. Another benefit of Contract Hire is that it is generally 'off balance sheet funding' (subject to legislation change) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.
* At Cars And Vansdirect we work with Manufacturers, Dealer Groups and the key finance partners to bring you some of the most competitive leasing deals available. We can include your maintenance in the rentals, and provide you with insurance through our trusted partners. We can also provide cars on PCP, HP and finance lease packages as well as contract hire and PCH. Our friendly professional leasing consultants are here to help you through every step, from your first enquiry through to arranging your delivery. You can drive a new car for less than you think! All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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Cars And Vans Direct
Cars And Vans Direct are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 690205
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