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Contract Hire Explained

 

CONTRACT HIRE

Contract Hire is a great option for companies who emphasise cost control. One regular and VAT- efficient payment will cover most motoring costs and risks, including the Road Fund Licence, depreciation and the eventual disposal of the vehicle. Many clients also choose to include a maintenance package that’s designed to suit them. The only other costs remaining with the customer are fully comprehensive insurance & fuel.

Contract Hire means that clients:

  • Gain an additional credit line.
  • Can reclaim the VAT on 50% of their payments and on 100% of their maintenance package costs.
  • Run vehicles that are not recorded in the Balance Sheet but on the Notes to the Audited Accounts.
  • Can claim Hire Rental Tax Allowances.

In Summary Contract Hire offers:

  • Fixed cost, inflation free motoring.
  • No Residual value risk.
  • Low initial outlay.
  • Cash Flow benefits for business users.
  • Ability to renew cars for minimal outlay.
  • Allows cars to be kept up to date and vehicle fleet fresh.

 

 

 

Terms & Conditions:

 

All rentals listed are shown as plus VAT, Based on 3 payments upfront followed by 23 installments.Contracted mileage is 25,000 miles per year.Fitting and removal cost of the FREE HE-MAN dual controls are the responsability of the DSA approved instructor.Finance subject to status. 

 

 

 

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