trueFleet Contract Hire, Car & Van Leasing in Huddersfield, West Yorkshire
trueFleet Contract Hire, Car & Van Leasing in Huddersfield, West Yorkshire
Vehicle & Leasing Solutions
Vehicle & Leasing Solutions

Contact us on: 01484 866218

  

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Vehicle Leasing & Contract Hire

 

What are the benefits

of Vehicle Leasing to

my business?

Vehicle Solutions

trueFleet® Contract Hire in Yorkshire for Business

Vehicle & Leasing brokerage based in Huddersfield

Business Contract Hire

A simple and cost effective way to fund any number of vehicles

 

Contract Hire is sometimes referred to as an Operating Lease.  It is a long term rental agreement.  Contracts can range from 24 to 60 months and are tailored to the businesses requirements.  The Contract Hire company reclaims the VAT on the original vehicle purchase, which therefore reduces your monthly rentals (which are plus VAT).  

Contract Hire is a very popular choice for companies that are VAT registered, 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).  For contracts including maintenance, the VAT on the service element is 100% recoverable.  

One of the major benefits is that there is no disposal risk, as the future value is underwritten by leasing company.  Another benefit of Contract Hire is that it is generally "off balance sheet funding" (subject to legislation changes) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.

 

Advantages:

  • Minimum capital outlay
  • Improved cash flow
  • Accurate monthly budgetary control
  • Rentals can be offset against the businesses profits.  Cars with a CO2 output above 130g/km are currently subject to a 15% disallowance on the amount of the rental that can be claimed against the businesses taxation, for contract-hired cars with a CO2 output of 130g/km or below, there is currently no dis-allowance
  • No vehicle disposal or maintenance risks
  • Reduced administration
  • On-going advice and support
  • Road Fund Licence is included for the duration of the contract
  • Optional maintenance package, breakdown and recovery cover
  • Optional replacement vehicle cover in the event of a major breakdown

 

Disadvantages:

  • Early termination can be expensive
  • If you cover more miles than stated in your contract, you will be charged an excess mileage cost for each mile over that stated in your contract
  • You must look after the vehicle and return it in a well maintained condition, or you will be charged for any damage over and above that stated in the "Fair Wear and Tear Guide"
  • You must have fully comprehensive vehicle insurance
  • You will never own the vehicle as there is no option to buy it

 

Have a question about Business Contract Hire?

 

Call us on:     01484 866218

Email us on:  enquire@truefleet.co.uk

Or use our "contact us" button below:

Download a copy of our trueFleet® Contract Hire information sheet here
trueFleet Contract Hire information.pdf
Adobe Acrobat document [436.2 KB]

" Buy that which appreciates and lease that which depreciates "

Billionaire oil tycoon, J Paul Getty

Contract Hire - process flow information


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© trueFleet® is a trading style of John Paul O'Leary | We are a credit broker not a lender | Authorised and Regulated by the Financial Conduct Authority FRN 685852 | ICO Registration Ref: ZA009514 | Address: 50 Whinmoor Drive, Clayton West, Huddersfield, West Yorkshire, HD8 9QA