Contract Hire

Contract Hire is the clever way to finance your vehicle. Even though you may be in a position
to buy your vehicle outright, this ties up a lot of valuable capital that could probably be used elsewhere. By leasing your car, you just pay a fixed fee based on how long you want the vehicle for and the estimated mileage you will cover during that period. As you don’t own the car, you don’t need to worry about disposal or the residual value at the end of the contract. Check out all the benefits of Contract Hire and see how you can benefit from financing your
next car:

Low Deposit
Contract Hire agreements can be set up with a low initial deposit, helping you into a new car more easily, without having to find thousands of pounds to put down.

VAT Reclaim
If you are VAT-registered, and the vehicle is subject to any personal use, you can reclaim 50% of the VAT on the finance element. 100% is reclaimable on the service element regardless of use.

Improved Cash Flow
Paying a monthly rental, rather than a large lump sum, allows you to put that money into other areas of your practice. As the rentals are fixed, you are protected from rate increase.

Off Balance Sheet
As you don’t own the vehicle it doesn’t appear as an asset on your balance sheet. You may benefit from writing down allowances.

Lower Risk
At the end of the contract the vehicle is returned, meaning you avoid any depreciation and disposal risk.

Reduced Administration
Service and Maintenance can be included in the contract, meaning no nasty surprises. Road Fund License is included for the duration of your contract, avoiding the queues at the tax office. We can also arrange replacement cover and accident management for added peace of mind.

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