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.
Email : firstname.lastname@example.org
Telephone : 01782 450925
Company Address :
Carzu.com Carzu is a trading style of Car-Finance.net Limited. Car-Finance.net Limited FRN FRN:679612 is an appointed representative of Jigsaw Finance Limited which is authorised and regulated by the Financial Conduct Authority FRN 679612. All financial applications submitted to Carzu are processed and/or administered by Jigsaw Finance Limited. Jigsaw Finance Limited is a Broker not a Lender.
Company registration number : 04259645 | VAT No : 823826816 | ICO Registration : ZA124934
Registered Office : Carzu, Genesis Centre, Innovation Way, Stoke-on-Trent, Staffordshire, ST6 4BF
All finance is subject to status and income, applicants must be 18 or over, terms and conditions apply, guarantees and indemnities may be required.
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.
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