Business Contract Hire offers 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 60 months). Finally, set a realistic annual mileage as excess mileage rates will apply.
Your monthly lease payments will be fixed, and will be based on the terms you agree. At the start of your business vehicle lease, you pay an initial sum, generally equal to 3, 6, 9 or 12 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 the funder will also manage any day to day repairs and servicing for you.
As long as your business is VAT registered you can claim back up to 50% of the VAT paid on lease payments for cars and if the vehicles is used solely for business purposes 100%. You can also claim back 100% of VAT on any maintenance packages.
Once your contract hire period has ended, simply hand the cars back. The funder will handle vehicle disposal / re-sale and you can focus on choosing new vehicles with the latest technology, lowest CO2 and best fuel efficiencies. Business contract hire funding does not provide an option to purchase your vehicle at the end of your lease period.
- 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 3, 6 or 9 monthly payments combined
- No need to worry about vehicle depreciation as the funder will take all risk
- Opt for a full service & maintenance option to save time and money on administration
- Tax efficient funding method if your company is VAT registered