“If it appreciates, buy it. If it depreciates, lease it.” 
Oil Baron Paul Getty


What Contract Length is available and how many miles can i drive?
We offer contracts from 24 months to 60 months, on some occasions the rates work out cheaper on 24 months than on a longer duration contract. Mileage can vary, we always quotes on 10,000 miles per annum unless our customer requestes a higher mileage. Some of our clients are on 40,000 mile contracts.

Who owns the vehicle?
Contract Hire ,the funder owns the vehicle and is the registered keeper.  The client can be the registered keeper on some persoanl deals we offer.

Who insures the vehicle? 
The vehicle must be insured by the Customer

Who carries the residual value risk?
The funder carries the Residual Value risk.

Who carries the ongoing maintenance costs? 
If a non-maintenance contract is chosen, the customer is responsible for all routine servicing and maintenance costs. Assuming a maintenance option is taken, the customer need never worry about any unexpected servicing or maintenance costs upsetting cashflow (and profits!). A blown bulb, a blown tyre or a blown clutch is only a freephone call away from a speedy, no-cost repair. Peace of mind that allows the customer to get on with running their business, rather than worrying about the running of vehicles.

What is Non-Maintenance Contract Hire? 
A Non-Maintenance Contract is a contract where the customer is responsible for maintaining and servicing the vehicle as recommended by the vehicle manufacturer. The supplier does however supply the road fund licence for the full contract period in most cases.

What is Full-Maintenance Contract Hire? 
A Full-Maintenance Contract is a contract where the supplier is responsible for maintaining and servicing the vehicle and includes all costs due to fair wear and tear. Additional facilities may be added to a Full-Maintenance contract such as RAC cover and relief vehicle cover.

Is the vehicle cost on or off the company balance sheet? 
Off balance sheet. Contract Hire is the acquisition method that guarantees the vehicles will be off the balance sheet. This has the following advantages: * Gives an effective cash injection or opens another credit line. Perhaps allows the customer to repay a loan or reduce an expensive overdraft. * Reduces the company's assets or investment level, therefore increasing the return on investment ratio (the profit is now a larger percentage of the asset value). This will make the company look a better performer in the eyes of current and potential investors, including, of course, the banks.

Typically how much cash is required up front? 
Typically a initial rental of six monthly installments is required, this can be increased to reduce the rental.

Who arranges vehicle collection and delivery? 
We arrange both delivery and collection anywhere in the mainland UK.

Does the customer own the vehicle at the end of the contract? 
No, the funder will always own the vehicle.

Can the monthly payments be offset in full against Corporation Tax? 
Yes. 100% of the monthly rentals may be offset against Corporation Tax. For vehicles costing over £12,000 a proportion is disallowed. To find exactly how much is allowable a simple calculation must be followed. This calculation is commonly known as the "Half the difference rule".
12,000 + 1/2 (Cost-12,000) x 100% Cost. We are always happy to help you work this out. 

Assuming some home to office use of the vehicle, are there any VAT benefits of Contract Hire? 
Yes. Following the VAT changes of 1 August 1995 Contract Hire has become even more desirable and more popular. There were three major changes:

1. Businesses can recover the VAT payable on the purchase of cars only if they are wholly for business use. Remember that even a single mile of home-to-office travel means that the vehicle does not qualify as "wholly for business use".
2. The financiers are able to recover all VAT payable on vehicles purchased, as they are purchased wholly for business use, regardless of the customer's use of the vehicle! This is where the major cost savings lie.
3. There is a 50% restriction for business on the recoverable VAT on leasing payments (not the maintenance element, which is still 100% recoverable, unless the car is wholly for business use). Whilst reducing the benefit slightly for the customer, the overall savings made are significant for Contract Hire.

What happens if I want to finish my contract early? 
If you wish to end the contract early a termination charge is payable. This is usually 50% of the outstanding monthly rentals.

What are my options at the end of the contract? 
The customer has three options available at the end of the contract period.

1. To hand the vehicle back and replace with a new one.
2. To extend the contract at a discounted rate, usually 5% for a six-month extension, 10% for a 12-month extension. 
3. Ask for a purchase price and purchase as an individual. (The company cannot purchase the vehicle; this is due to the tax advantages that have already been achieved.)

Is there anything to pay at the end of the contract? 
Hopefully not! Charges are made only if the vehicle has done more miles than contracted to do. This is called an excess mileage charge; the excess mileage charge will be written on the contract and will vary from vehicle to vehicle. To avoid this charge we encourage customers to advise us during the contract if they feel that more or fewer miles than originally expected are likely to be done and we will amend the contract accordingly. The only other charge would be if the vehicle had been damaged and not repaired.

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