Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts range from 12 to 60 months and are tailored to the businesses 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 that 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 your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 029 2022 6406
30 Kingsland Road
Bay Vehicles Ltd trade under Hanborough Enterprises Ltd’s brand name of Platinum Funding, part of the Bridle group of companies. We are an Appointed Representative (Firm Reference Number 498883) of Hanborough Enterprises Ltd who is authorised and regulated by the Financial Conduct Authority for consumer credit activities (Firm Reference Number 631448). You can check this on the FCA Register by visiting www.fca.org.uk or by contacting the FCA direct on 0300 500 8082. We are an independent vehicle finance broker and we operate with a panel of carefully selected funders. We may receive commission and/or other benefits from the finance provider if you enter in to an agreement with them. Bay Vehicles Ltd registered office and trading address is 30 Kingsland Road, 5 Exeter Close, Canton, Cardiff, South Glamorgan CF5 1HU, Vat no 527 8788 40, Data Protection Licence ZA151133
We are a Credit Broker and not a Funder or a Lender
Pictures are for illustration only and may not be the exact model. Finance is subject to status. Calls are recorded for training and quality purposes
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