Contract Hire

Contract Hire removes all the financial risk, reduces internal resource required to run your fleet, improves cash flow and provides the benefit of off balance sheet funding.

The Leasing company remains the owner of vehicles supplied on contract hire basis and therefore means that the leasing company takes the risks associated with acquistion, disposal and maintenance costs of the vehicle. We will manage the vehicle from "cradle to grave".

We will purchase and deliver the required vehicle on agreed term and manage the contract throughout its life. We then collect upon expiry and dispose of. This allows our customer to free up valuable time and concentrate on core activities. Improved Cash Flow - We supply the vehicle for an agreed term at a fixed monthly rental. This makes cash flow budgeting much easier for the customer.

Off Balance Sheet Funding - As the leasing company owns the vehicles Contract Hire also means that the vehicles do not appear on the customer`s balance sheet. This can enhance customer's gearing (borrowing) ratio. VAT - The VAT on contract hire rentals is recoverable - subject to Article 7 (2)(A) of the VAT (Input Tax) Order 1992 (as amended).

If the vehicle is used for private use the customer can usually reclaim 100% of the VAT on the servicing element and 50% on the finance element of the contract.