What is Business Contract Hire?

There’s an initial payment or deposit followed by fixed, monthly payments. At the end of the lease term, your business simply hands back the vehicle, the payments cease, and your business is free to lease again if it wishes to. With leasing, your business is simply paying rental costs for the period of usage and is therefore avoiding having to pay for the total cost of the vehicle including the cost of its depreciation. Vehicle leasing is a rental arrangement where your business leases a vehicle(s) of it’s choosing, for an agreed length of time (usually between 2-5 years) for a fixed cost.

Business Car or Van Leasing Could Suit Your Business… if it’s looking for a lower initial financial outlay, fixed monthly payments and the freedom of being able to hand back the vehicle at the end of the lease.

Business Contract Hire - Things to Consider

• Exceeding your annual mileage (estimated at the start of the lease) may incur charges
• Terminating the lease early is possible, however may incur charges (charges are based on mileage and payments made to date)
• The vehicle must be maintained to manufacturer’s standards, and body wear and tyres must meet BVRLA and individual funder requirements. Any damage beyond Fair Wear and Tear may incur charges to enable repairs

Information is provided as a guide only. Select Car Leasing cannot be held responsible for any personal or business decisions made as a result of information provided in the guides.

As with all aspects of taxation, it is the responsibility of individuals and businesses to understand the rules and regulations and act accordingly. As personal and business circumstances can vary, it is also advised that you take professional accounting advice before making a final decision.