Contract Hire
Contract Hire is the most popular leasing option amongst businesses. It offers a hassle free approach to running vehicles.
Benefits of Contract Hire
The main benefit is that businesses pay a fixed monthly cost for each vehicle. This enables you budget and forecast accurately.
The main points
- It eliminates the financial risk associated with the disposing of your vehicles, because you simply hand them back at the end of the contract
- It is an off Balance Sheet Funding method which frees up credit lines
- Rentals can be offset against profits
- You can reclaim 100% of the VAT on the maintenance package, and 50% of the VAT on the finance rental cost (100% on vans)
- You will receive road tax for the duration of the contract
- You have the option to include a maintenance package (servicing, replacement parts and tyres)
- You have the option to include breakdown cover and replacement vehicles
What happens at the end of the lease?
You simply hand the vehicle back at the end of the contract - You have no option to purchase the vehicle.
Other leasing options
For information on other finance types (including Finance Lease, Contract Purchase and Lease Purchase), read our leasing finance pages.
Top tip - Take a look at our leasing finance comparison chart. This useful chart will help you compare leasing options at a glance.
Unsure which option is right for your business?
Then call us on 0845 052 5268 or send us an enquiry - We'll happily go through the different options with you.
