Contract Hire
Financing your new van using Contract Hire is the easy option to enjoy peace of mind and fixed cost motoring. A low deposit and low monthly repayments make this the ideal way to finance your new van. What's more, with Contract Hire your tax disc is automatically renewed at no extra cost. You can also remove the van from your balance sheet, avoid the issue of depreciation, avoid slipping into negative equity and, at the end of the term you can hand the vehicle back for a brand new one or simply walk away.
Because the rental amount is set in line with the van's depreciation, Contract Hire is often more cost effective than choosing to buy your van outright or on a Hire Purchase agreement. Of course, you could pay that little bit more and enjoy the added convenience of full maintenance and servicing at a fixed monthly cost.
Contract Hire Finance features include;
Cash flow – by using the Contract Hire option the van wont show on your balance sheet. This way you don't need to worry about cash flow or the problem of depreciation and negative equity.
Fixed monthly rentals – aid budgetary control and cash flow. For a small additional monthly cost you can also choose to benefit from a maintenance package that could cover the costs of road side recovery, servicing, repairs and tyres (various maintenance packages available).
Low deposit – normally the equivalent of 3 monthly rentals. In some cases even a zero deposit is possible.
Tax advantages – monthly rentals include VAT which, if you're VAT registered, you can reclaim every quarter.
Tax relief – you can offset 100% of the monthly rentals against profits
Mileage restrictions – you choose the mileage that's right for you and your business. If you need to do more than you initially thought then any excess mileage will simply be charged at the end of the term (the pence per excess mile charge will be clearly indicated on the your finance agreement).
Depreciation – the van's depreciation is the risk of your finance provider not you.
Optional maintenance packages – you can choose to pay a little extra per month to cover any costs associated with servicing, road side recovery, repairs and tyres.
Road Fund Licence included – your tax disc will be delivered to your door - no hassle, no fuss
