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26th Jan 2020 - Follow us on Twitter @firstcarleasing for the most up to date offers

Business Contract Hire (Operating Lease)

Contract Hire (Operating Lease) - Business

This is where a vehicle is leased by a business user for a fixed period of time for a fixed monthly rental. It is a perfect product for those companies who do not want the financial and logistical risks involved in acquiring and disposing of a vehicle. At the end of the contract, the vehicle is returned to the finance company with nothing further to pay and you are then free to commence another contract on another vehicle.

Benefits of Contract Hire:

  • Low initial outlay
  • Flexible rental pattern
  • Fixed monthly costs which can include maintenance - reduces your financial risk
  • More capital available for your core business
  • Off-balance sheet borrowing - vehicle does not appear on your company's balance sheet as it is not owned by you
  • No depreciation risk
  • No disposal problems
  • VAT on rentals reclaimable (subject to use only 50% if private use)
  • 100% VAT reclaimable on Maintenance element
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