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.
* Affordable car leasing and van lease services for both business and personal contract hire in Northampton. If you need a car or van fast, call our Northampton team today for a great deal.
T: 0800 612 8901
F: 01604 570700
Silverstone Fleet Management
The Old Hay Barn
Preston Lodge Court
Registered Office : Office 5, The Old Hay Barn, Preston Lodge Court, Preston Deanery, Northampton, NN7 2DS
| Registered in England and Wales Company Reg No : 8079695 | Data Protection No : Z3311594 | VAT No : 138056808 |
Silverstone Fleet Management is a trading name of Silverstone Corporation Limited. Silverstone Corporation is a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 674485
Silverstone Fleet Management are a member of the British Vehicle Rental and Leasing Association (BVRLA). Registered No : 1918
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