Key Features:

  • Facilities to fund a single vehicle or fleets of vehicles for business customers;
  • Off balance sheet funding as the vehicles are owned by the finance company;
  • Fixed monthly cost for the life of the agreement;
  • Terms can be tailored to meet specific requirements regarding mileage and funding period;
  • Can include all the maintenance costs or just the finance element;
  • Road fund licence costs are included;
  • VAT is paid on the rentals and these can be recovered in full for a commercial vehicle and 50% for a car.

 

Key Benefits:

  • Assists cashflow and budgeting by spreading the cost of vehicle ownership over the useful life of the vehicle;
  • A minimal deposit is paid – typically only 3 rentals;
  • A customer can benefit from the purchase power of the finance company with vehicles significantly discounted along with associated maintenance costs;
  • Rentals are offset against taxable profits which could reduce your tax liability;
  • No potential to lose money on disposal at the end of the contract as this is at the finance company’s risk;
  • Fleet management capability assists companies when running fleets of vehicles.

 

Contact us to learn how contract hire arrangements can help your business.

 

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