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.
Email : firstname.lastname@example.org
Telephone : 01303 847494
Company Address :
DP Leasing is a trading style of Skyfleet Limited , who is authorised and regulated by the Financial Conduct Authority. We are a credit broker and not a lender. Registered No: 669102
Registered in England & Wales with company number : 03463255 | Data Protection No : Z5828790 |
DP Leasing, a trading style of Skyfleet Ltd - Main Office : Main Road, Sellindge, Ashford, Kent, TN25 6AQ
Registered office - Skyfleet Ltd, Unit 3 High House business park, Kenardington, Ashford, Kent, TN263QR
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.
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