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.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 023 8009 0019
New Car Contract
Unit 25 Acorn Business Park
YRAM Solutions Ltd t/a New Car Contract is an appointed representative of Auto Protect (MBI) Limited which is authorised and regulated by the Financial Conduct Authority (their registration number is 312143 ) and which is permitted to advise on and arrange general insurance contracts. YRAM Solutions Ltd is authorised and regulated by the Financial Conduct Authority for consumer credit activity and our registration number is 620132. All finance is subject to status and income. Written Quotation on request. We act as a credit broker not a lender. We work with a number of carefully selected credit providers who may be able to offer you finance for your purchase. We are only able to offer finance products from these providers.
Registered in England & Wales with company number : 07809250 | Data Protection No : ZA084908 | VAT No : 121 9086 30
Registered Office : Unit 25 Acorn Business Park, Empress Road, Bevois Valley, Southampton, SO140JY
Copyright © 2019 New Car Contract, All rights reserved.