A simple and cost effective way to fund any number of vehicles.

Contract Hire is a simple and effective way to fund any number of vans.  Contracts range from 24 to 60 months and are tailored to your requirements.

With small initial rentals and fixed monthly costs, Contract Hire makes budgeting more simple.  Also, you have no risk of residual values at the end as you hand the van back.  Additionally, maintenance and recovery can be included in the monthly rental.  In turn, this eliminates most of the stress and financial risks of van ownership.

We know there may be downsides to Contract Hire being your best finance route.  More information is available online below, and we are on hand to help.  Get in touch to discuss your requirements and our van finance deals.

Advantages

• A fixed cost making budgeting more simple
• A small initial cost
• No exposure to residual value risk
• VAT recovery on the lease rentals (subject to 50% block)
• VAT is payable on each lease rental (as opposed to upfront)
• Corporation tax relief available against the lease rental charges
• Eliminates most of the stresses and financial risks of vehicle ownership
• Reduced car fleet administration

Disadvantages

• The company will be tied into a fixed contract
• No ability to profit from residual values
• There is no option for the company to purchase the vehicle
• It will be necessary to forecast the expected term and mileage for the car at the outset of the contract
• If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
• You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the ‘Fair Wear and Tear Guide’
• You must have fully comprehensive vehicle insurance (or third party and self-insure)