Leasing has become a very popular method for business users to fund their vehicles. When you consider the uncertainty and risk around vehicle depreciation, the time commitment and administration required to make sure your vehicle is taxed and maintained throughout its life and then the sale of your asset when you want to upgrade, a vehicle purchase can become more difficult than it needs to be. We encourage you to explore the benefits of our Business Contract Hire package.
You pay an initial rental upfront, usually the equivalent of 3,6 or 9 monthly rentals, and then the regular monthly rentals for your chosen duration of up to 4 years. These monthly rentals tend to be significantly lower than any comparative purchase plans. These payments all attract VAT, which can be reclaimed if the vehicle is used solely for commercial use. If used as a private vehicle you are still able to claim back at least 50% of the VAT.
During the contract, the annual road tax will be renewed automatically by the leasing company. You may have decided to include maintenance into your payments which will cover any routine servicing costs and tyres. This can save you the trouble of requesting quotations and receiving unexpected costs.
At the end of the agreement, the vehicle is returned to the leasing company with nothing to pay subject to its mileage remaining within the agreed limits and the condition reflects its age and mileage. The market value of the vehicle does not impact the agreement in anyway which means that the overall costs of the contract are very clear from the very moment you take out the contract and there is no risk of miss-predicting your investment.