Contract Hire

Car KeyAlso known as an operating lease, contract hire is the most common type of lease available in the UK, and remains extremely popular among our customers. Leasing a vehicle instead of purchasing it means you are not tying up capital in a rapidly depreciating asset. With the running cost of cars and light commercial vehicles being one of the biggest expenses most businesses face, coupled with the risk of depreciation, it’s no wonder contract hire is such an appealing option. This option works on a fixed monthly rental and therefore removes financial uncertainty and risk, making budgeting easy. Whether you are running a single car or a fleet of 10,000 vans, contract hire enables you to have control of this significant business expense. Most vehicles will lose value from the moment they leave the showroom. In a contract hire deal, you return it to us at the end of the contract period, and we take the residual value risk and dispose of the vehicle on your behalf.

Key benefits:
  • The vehicle appears off ‘Balance Sheet’ as it is owned by the leasing company
  • Tailor-make your own package with bolt-on products and benefits
  • Our considerable buying power enables us to pass on the savings to our customers through low cost rental as well as highly competitive ancillary products such as maintenance, foreign travel cover and accident management
  • Customers who rent cars with CO2 emissions below 130gm2 will receive even greater tax benefit
  • The convenience of a full maintenance service, at a fixed monthly cost, is optional
  • Road Fund Licence is provided for the full term of the contract
  • There is VAT recoverability at 50% for the supply of the vehicle and road tax licence. There is also VAT recoverability at 100% for optional services subject to the customer’s VAT status
  • No financial risk associated with disposing of the vehicle

 

For more information or to discuss your circumstances please get in touch on 01825 720900 or sales@neva-consultants.com