A Business Lease, also known as Business Contract Hire.
Business Contract Hire is a cost effective, fixed cost, fixed term, rental agreement for Business's.
All contract hire agreements include road fund licence for the duration of the agreement and as an option you can add full maintenance and a relief vehicle.( seee our section on Full maintenance)
It is possible to contract hire a vehicle from 24 upto 60 months with an annual mileage as low as 5,000 miles per annum or a maximum mileage of 150,000 for the lengh of the contract for diesel vehicles.
The contract hire company purchase the vehicle at the best possible discount from the manufacturer or the dealer and then hires the vehicle to the business for a fixed rental, due to the number of cars purchased by the contract hire company they achieve the best prices. At the end of the contract you return the vehicle to the contract hire company for disposal.The business has no further involement or responsibility provided the vehicle is returned in a good condition. (See our section on Fair Wear and Tear)
All rentals attract VAT at the prevailing rate, and subject to your current VAT status you may be able to claim 50% of the VAT back for cars and upto 100% of the VAT on light commercial vehicles.
The contract hire agreement can be designed to suit your business budget, and your vehicle usage. At the outset we will agree and initial rental as little as 1 rental in advance with alternative intial rentals of 3,6,9 or 12 rental in advance. The larger the intial rental the lower the monthly rental costs.Please note that the initial rental are collected by the leasing company by direct debit 7-10 working days after delivery of the vehicle.
We will also agree the annual mileage at the outset, and subjectto leasing company terms and conditions it may be possible to change the annual mileage allowance at certain points during the contract term. Our quotes will have an excess mileage stated on them, for example, if the excess mileage is £0.06 pence per mile and you go over by 1,000 miles it will cost you £60.00 at the end of the agreement.
All vehicles supplied are New ( or Pre-Registered) and will come with the balance of the manufacturer's warranty.
Advantages of Business Contract Hire
Fixed cost motoring
'Off' balance sheet funding
Available to all business types, Sole Trader, Small Partnerships, Large Partnerships, Limited Companies and PLC's
Tax relief for your business (Please refer to your accontant)
No worries about disposal at the end of the contract (subjct to BVRLA Fair Wear and Tear Guide)
Disadvantages of Business Contract Hire
There is no ability for the business to purchase the vehicle
All rentals attract VAT
Early settlement, there is no prescribed formula for early settlement, each leasing company operates independently on this.
Potential de-hire charges
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