Contract Hire
Contract hire.
Our most popular type of vehicle finance. Contract hire is a good choice if you want to avoid the risk and hassle of buying, servicing and disposal of fleet vehicles.
How does it work?
Subject to terms and conditions, you hire a vehicle from us for a set period and pay a fixed monthly rental. At the end of the contract, you simply return the vehicle to us. You enjoy all the benefits of using the vehicle and we retain all the risks of owning it.
Benefits.
Easier budgeting
Vehicle rental costs are a known entity from the outset. You can also include all the maintenance costs and breakdown cover in the fixed rental, leaving you just the fuel and insurance budgets to set.
Smoother cashflow
The cost of the vehicle acquisition is spread monthly over the length of the contract. There is only a small initial payment, typically equivalent to three months rental, and no final balloon payment.
Less administration
We handle all the administration of supplying, servicing and disposing of vehicles, which frees up resources for your core business.
Flexible contract
The length of contracts can be tailored to your needs and budget from the outset. They can also be adjusted during a contract, if you want to, to reflect the changing nature of your business.
Reduced financial risk
You don’t have to worry about residual values, interest rates and, if it suits you, maintenance costs and relief vehicles. They are all our responsibility.
Off balance sheet funding
Contract hire vehicles do not appear on your company’s balance sheet. This can improve your borrowing potential, which can then be invested more effectively in your core business.
VAT advantages
We reclaim VAT on every vehicle we buy and pass that saving to you in the form of lower rentals. Once the vehicle is on the road, you can claim back 100% of the VAT on the servicing element of your rental and 50% of the VAT on the finance aspect.