Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts can range from 6 to 60 months and are tailored to a business's 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 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 the business's gearing ratio (assets to borrowing ratio) and therefore possibly it's borrowing ability in the future.
Email : firstname.lastname@example.org
Telephone : 01786 479860
Company Address :
Genus Vehicle Solutions (Stirling)
124 Castle House
1 Baker Street
Genus Vehicle Solutions (Stirling) are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 722796
Registered in Scotland with company number : SC334690 | Data Protection No : Z1917822 | VAT No : 925 8336 05
Registered Office : 124 Castle House, 1 Baker Street, Stirling FK8 1AL
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.
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