Contract Hire is an Operating Lease, specifically for the ownership of vehicles within a business – singular or fleet.
Monthly rental payments will cover the cost of the vehicle(s) including VAT, the road fund license and can also incorporate a maintenance payment.
As with standard Operating Leases, there is no large deposit requirement. Typically, a deposit is a single monthly payment.
If buying multiple vehicles through Contract Hire, you may be able to secure large discounts on the price of the vehicles from the manufacturer/supplying dealer. We have developed good contacts within the trade and may be able to help you source vehicles. Please contact us to discuss further.
At the end of the agreement, vehicles are simply be returned to the supplier. You may be offered a discounted purchase at this point, but there is no obligation to buy. The vehicle return is governed and protected through the British Vehicle Rental and Leasing Association.
Ownership of the vehicle stays with the supplier and therefore the asset(s) never features on the company’s balance sheet. Costs associated with Contract Hire are accounted for through Profit and Loss, therefore monthly rentals can be used to offset against Corporation Tax.
Speak to one of our team. We are here to help