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Contract Hire
Benefits of Contract Hire
Lessee has no risk and monthly rental is tax deductible and a benefit
to the business.
- Any make or model of vehicle
- Immediate use of the vehicle with the minimum cash outlay
- fixed price monthly rentals
- Full Service options will include: tyres, batteries & exhausts
- Non service contract available
- Option to buy at end of contract
- No risks on disposal or servicing costs
- Road fund licences & RAC included
- Upgrade to new vehicle every 2-4 years
- Nationwide coverage
- Monthly rental is tax deductible
Example of Contract Hire
| Capital value of vehicle |
£20,000 |
| Resale value of vehicle in 3 years |
£10,000 |
| Balance to be financed |
£10,000 |
| Add expected service costs |
£1,000 |
| Add interest + profit |
£3,000 |
| Total finance to consider |
£14,000 |
| 36 monthly Rental Figure |
£358.00 |
Head Lessor bears no risk
- Servicing budget - 1000
- Resale value - 10,000
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