Car and Van Contract Hire.

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CAR AND VAN CONTRACT HIRE (WITH OR WITHOUT MAINTENANCE)

Contract hire is a very low cost option of running a vehicle by business users (sole traders / partnerships or limited companies) if:

• the deposit is required to be as low as possible
• the monthly payments are to be kept to a minimum
• the ownership of the vehicle is not required by the user at the end of the agreement

If you do not wish to own the vehicle after the agreement ends, this is an excellent option for you to choose.

The deposit required is usually a minimal amount with the balance on finance payable by fixed monthly rentals, plus VAT. This includes fixed rates of interest payable which cannot be increased after the agreement has commenced.

The contract hire agreement (with maintenance) includes full maintenance, servicing, and road fund licence whereas the contract hire agreement without maintenance excludes all of the above, keeping the rental for the vehicle to a minimum amount.

Business users can take out a contract hire agreement with the knowledge that they know their exact monthly outlay for their vehicle (excluding petrol or diesel costs), and they also know that this will not increase throughout the term of the agreement.

100% of all VAT paid on the monthly rentals can be reclaimed by business users provided the vehicle is only used for business or is a commercial vehicle (50% if partly used privately if a motor vehicle). In regards to contract hire with maintenance, 100% of the VAT can be reclaimed on all maintenance portions of the rental.

The term of the agreement is usually 1 to 4 years.

Rentals are usually monthly / quarterly or half yearly by direct debit.

Deposits are usually 1 rental / 3 rentals or 6 rentals in advance (paid on signing of the agreement).

The commencement date of subsequent rentals (after the advance rental has been paid) is usually one month / three months or six months after the agreement commenced, dependant on the term of the advance rentals.

The amount financed can be minimum £5000 plus VAT to a maximum of £100,000 plus VAT.

The vehicle is not owned by the user and is returned to the leasing company at the end of the agreement period. Usually a replacement vehicle can be obtained and a new agreement taken out by the business user.

To apply now please click HERE.