Business contract hire

A simple, straightforward solution for your company vehicle Get-a-Quote-Funding-Bus.Contract Hire-header-V3.jpg

Business Contract Hire deals a straightforward way to fund brand new cars for your company. It’s an easy to manage solution that doesn’t tie up capital and can be tailored to meet your business needs.

 

How it works

Select the cars you want, based on your budget, then select a lease period that suits your needs (usually between 24 and 48 months). Finally, set a realistic annual mileage limit*.

Your monthly lease payments will be fixed, and will be based on the terms you agree. At the start of your lease, you pay an initial sum, generally equal to six monthly payments combined. From then on, you pay a fixed, single monthly fee until the end of your agreement.  You can also take out a maintenance agreement (at an additional cost), which means that as part of your monthly payments we’ll also manage any day to day repairs and servicing for you.

As long as your business is VAT registered you may be able to recover 100% of VAT paid on van lease payments if the vehicles are used for business purposes.

For cars, in most cases you can claim back up to 50% of the VAT paid on lease payments if the vehicles are used solely for business purposes.

You can also claim back 100% of VAT on any maintenance packages for cars and vans.

Once your contract hire period has ended, simply hand the cars back to us. We will handle vehicle disposal / re-sale and you can focus on choosing new vehicles to upgrade your fleet. Business contract hire funding does not provide an option to purchase your vehicle at the end of your lease period.

 

The benefits

  • No need to tie up capital in your fleet – vehicles don’t appear on your balance sheet
  • Fixed monthly payments allow for easy budgeting and improved cash flow
  • Keep your business moving and your drivers motivated, with brand new cars
  • Low initial outlay – typically just 6 monthly payments combined
  • We take on the risk – so you don’t need to worry about vehicle depreciation
  • Opt for our full service maintenance option to save time and money on administration
  • Tax efficient funding method if your company is VAT registered

 

* If you think you might exceed the agreed mileage limit, talk to us as we can often offer revised terms based on your new mileage projections

Is Business Contract Hire right for you?

Choose the funding option that’s right for your business:

– It may suit you if you are VAT registered, allowing you to make the most of available tax advantages, and if your drivers do regular, predictable mileage.

– It might not suit you if your fleet mileage is unpredictable, or if your company isn’t VAT registered, as you won’t be able to claim back the VAT on your rental payments.

 

Take a look at our funding overview page for other funding options available to personal and small business customers, or speak to one of our experienced advisors on 0343 351 9073.

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