Contract hire is probably the most popular method of acquiring company vehicles in the UK. And for good reason. Under a contract hire agreement, you pay a fixed amount each month over an agreed period – usually 36, 48 or 60 months. You’ll also agree a total mileage for the contract hire period.
The Main Benefits
Free up capital
Forget about large upfront outlays tied up in rapidly depreciating assets. Simply pay an agreed monthly amount. You’re also able to free existing lines of credit for the most profitable areas of your business.
No vehicles on your balance sheet
The risk of ownership remains with Vision Asset Finance. Your rental payments are non-capital and the vehicle will stay off the balance sheet.
The used car market is notoriously volatile. Contract hire eliminates the risk of being hit with a loss on vehicle disposal.
Choose a full service contract and you remove the risk of unexpected maintenance costs. This has the added advantage of relieving you of the administrative burden of vehicle maintenance authorisation, payment and control.
Save money – save staff time
Benefit from a variety of cost savings, without time-consuming administration and paperwork.
Contract Hire – Other Facts To Consider
- Large VAT savings – we reclaim VAT on the new vehicle
- Access to manufacturer bonuses and bulk discounts
- Highly competitive finance rates
- Tax disallowance on cars costing over £12,000 has been replaced (for vehicle registered on or after 1st April 2009) by a new taxation system based on the vehicles CO2 emissions called Leasing Disallowance.
- 50% restriction on VAT recovery on finance element of rental.
You can contact one of our vehicle advisors on 028 2565 6000 or request a Contract Hire Quotation.