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What is contract hire finance?
Contract Hire Finance is a method of acquiring and using a vehicle
for a fixed monthly payment, with an agreed time and mileage where
the risks of ownership remain with the lessor.. A full maintenance
Contract Hire removes all the everyday problems associated with
company cars including: sourcing and taxing the vehicle, carrying
out all service, maintenance & repairs.
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Never
owns the vehicle |
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Bears
no risk on interest rates, maintenance and residuals |
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Vehicles
OFF balance sheet |
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Fixed
cost, trouble free motoring |
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Customer
pays total rental plus VAT |
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On
finance element of rental 50% VAT recoverable if private use
of vehicle on non-finance element |
What is finance leasing?
If you need
full use of a car for a minimum outlay, plus tax benefits, but
do not want eventual ownership, then consider leasing. We can
recover the VAT on the purchase price of any car to be leased,
so the cost of financing one will be calculated on the VAT exclusive
price. This reduces the cost of your monthly rentals. Leasing
is also a very flexible option to choose because rentals can be
paid monthly, quarterly, or annually throughout the lease period
(normally between 2 to 4 years). Rentals can also be tailored
to match your business's cash flow so, for example, you could
incorporate a balloon payment. The car is classed as a company
asset for balance sheet purposes during the agreement and the
rentals can be offset against taxable profits.
The potential advantages of a finance lease
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Rental
plan to suit your cash flow |
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Vehicle
sold at end of lease providing a rebate of rentals |
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Tax
efficient - rentals offset against taxable profits |
Terms
and conditions apply.
Personal Lending is regulated under the Consumer Credit Act
1995. |
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Contract
hire finance
