How does Contract Hire Work

  • Choose any make or model of car or commercial vehicle.
  • Once you have decided on the preferred term and estimated the annual mileage, a fixed rental is set.
  • If the full maintenance option is chosen then the rental will include all servicing, maintenance and mechanical repairs and membership of the AA.
  • Road Fund Licence throughout the rental period is included with both the maintenance and non-maintenance options.
  • Also, substantial savings can be made if you choose a nearly new vehicle.

VAT

  • When purchasing a new vehicle, Leasing/Contract Hire companies will reclaim all of the VAT on the vehicle. Therefore the capital amount requiring funding is greatly reduced and this advantage is reflected in the monthly rentals.
  • Also VAT charged on vehicle rentals is fully reclaimable by the lessee on the maintenance amount and 50% reclaimable on the leasing amount (100% if the vehicle has no private use or if it is a commercial vehicle).
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