Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts range from 12 to 60 months and are tailored to the businesses requirements.
The Contract Hire Company reclaims the VAT on the original purchase, which reduces your monthly rentals (which are + VAT). Contract Hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use, no exempt turnover and not being on the Flat Rate VAT Scheme).
On contracts with maintenance the VAT on the service element is 100% recoverable. One of the major benefits is that there are no disposal worries as the future value is underwritten by the leasing company. Another benefit of Contract Hire is that it is generally 'off balance sheet funding' (subject to legislation change) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.
* We offer the best UK Leasing Deals and contract hire for Audi Leasing, BMW Leasing, Ford leasing, Honda Leasing, Jaguar Leasing, Land Rover Leasing, Mercedes Benz leasing, Volkswagen Leasing In Shropshire, Car Leasing in Staffordshire car leasing in Cheshire car leasing in Oxfordshire car leasing in Hampshire car leasing in Surrey car leasing in Essex car leasing in Yorkshire car leasing in Nottinghamshire.
T: 0333 577 5708
Ashbourne Leasing are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 839353
Registered in England & Wales with company number : 11909351 | Data Protection No : | VAT No : 320 1817 47
Registered Office : Ashbourne House, Prospect Road, Market Drayton, United Kingdom, TF9 3AP
Copyright © 2020 Ashbourne Leasing, All rights reserved.