 Contract Hire and Company Vehicle Leasing for Business
A popular car leasing choice for VAT registered companies and individuals / sole trader businesses, contract hire deals can be very beneficial. One monthly payment covers all costs involved in running a company car, bar the car insurance, for which fully comprehensive and GAP insurance is required. Vehicle Excise Duty & monthly payments are determined by the following factors:
• cost of car
• agreed annual mileage
• agreed contract length
• optional maintenance & servicing
 A deposit is payable on the vehicle of three times the monthly contract hire payment. VAT is payable by the contract hirer upon all payments, but can be claimed back dependent upon the individual or company circumstances.
Excess mileage upon the contract hire vehicle is payable at a fixed and agreed rate at the end of the contract, whereupon the finance company become the owners of the vehicle. At this point, the contract can be extended or ended, but the hirer has no right of purchase.
The asset is also removed from the balance sheet, payments are made based upon monthly income / expenditure, freeing up company capital from a depreciating asset.
A penalty payment is due upon early ending of any contract hire agreement.
Vehicle and Car Finance Options
We are in a strong position to not only offer Contract Hire and Leasing deals to our clients, but also to help with all vehicle finance through Finance Lease, Hire Purchase and Lease Purchase.
 Hire Purchase and Lease Purchase For non-VAT registered businesses or individuals that want eventual ownership of the vehicle.
This type of lease is essentially a funding agreement where ownership is acquired when all the payments, including the option to purchase price, have been made. Part of the capital cost of the vehicle payment may be deferred into a balloon payment at the end of the agreement; this will be in accordance with the anticipated value of the vehicle.
If ownership is not essential and the business is VAT registered, Contract Hire would be better value for money.
 Finance Lease Ideal for VAT registered businesses that want to handle the admin of their vehicles and have the asset shown on their balance sheet.
A VAT beneficial finance option where the hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the vehicle.
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