Contract Hire is s popular choice for VAT registered businesses as this is a VAT beneficial financing package, one regular payment covers all (including maintenance if required) for an agreed period and mileage.
Car tax is included and at the end of the term, you just hand back the car.
Ideal for V.A.T registered businesses that want to handle the admin of their vehicles and have the asset shown on the balance sheet.
A VAT beneficial finance option were the hirer can choose to pay the entire cost over the agreed lease period, plus an interest charge, or pay lower monthly rentals during the lease period with a final payment based on the anticipated resale value of the car.
For businesses with high value cars that would like the option to purchase the vehicles but do not want any depreciation risks.
The business acquires the vehicle by paying fixed monthly instalments with the asset being shown on the company balance sheet and can either retain ownership at the end of the contract or hand the car back.
Lease Purchase/ Hire Purchase
For non-VAT registered business or individual that want l ownership of the car at the end of the contract.
A funding agreement where ownership is acquired when all the payments, including the option to purchase have been made. Part of the capitol cost of the vehicle payment may be deferred into a balloon payment at the end of the agreement, the anticipated value of the car. If ownership is not important and the business is VAT registered, the best leasing option would be Contract Hire.