A fixed term agreement based upon a predetermined annual mileage, Contract Hire removes the risk of depreciation and regularizes cash flow with a fixed monthly payment including road fund licence.

Additional services can be arranged to include vehicle servicing and maintenance, tyres and exhaust replacements, breakdown assistance, and relief vehicle facility. The ability of the Funder to reclaim all of the VAT on the purchase price in turn, reduces the monthly payment in comparison with a purchase plan.

Benefits

• The rentals are tax deductible
• Initial payment requirements are generally low
• Pre-determined costs and fixed terms smooth out cash flow
• Accurate budgeting with minimal administration
• Rentals can include maintenance and vehicle servicing
• No purchasing or disposal hassles
• No risks of depreciation
• The leasing company is able to reclaim all the VAT of the purchase price of the vehicles, which is reflected in much lower overall costs