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Business Contract Hire

Business Contract Hire

Key Points and Advantages

  • Low initial outlay compared to purchase or hire purchase
  • You can drive a new car that may otherwise be unaffordable
  • Fixed monthly payments
  • All required servicing and maintenance costs can be included in the rental
  • Road tax included for duration of contract
  • No depreciation risk
  • No hassle selling your vehicle – it will be collected by the finance company
  • It is easy to change vehicles every 2 – 4 years, depending on Contract Hire term
  • Manufacturer warranty and breakdown cover apply
  • Assuming standard vat rate you can claim back 50% of vat on finance element and 100% on any maintenance element of the rentals
  • A portion of the rentals will be allowable against tax

Things to consider

  • If you go over the agreed total mileage you will pay an excess mileage charge so try and estimate mileage as accurately as possible
  • You will be billed for any damage exceeding that stated in the Fair Wear and Tear Guide so try and return the vehicle in good condition
  • Early termination of the contract can be expensive. The finance company may look for between 50% and 100% of the remaining rentals.

Business Operating Lease

Most deals on our site are Contract Hire and are available to business or private individuals. A few offers are based on Operating Lease which is basically the same as Contract Hire but includes the first year’s road tax only. Contract Hire includes road tax for the full term.
The above information would also apply to Operating Lease

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