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.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 01392 825266
Carrs Contract Hire & Leasing
85 Meneage Street
Helston Garages Ltd trading as Carrs Contract Hire & Leasing is authorised and regulated by the Financial Conduct Authority for the broking of Consumer Credit (but not lending) and sale of insurance products under Firm Reference Number 313009. You may check this on the Financial Services Register by visiting the FCA’s website, https://register.fca.org.uk or by contacting the FCA on 0800 111 6768.
Helston Garages Ltd is registered in England & Wales, Reg. Company Number: 703021. VAT Reg. No. GB447416638. Data Protection register number Z5351929
Registered Office: Helston Garages Ltd, 85 Meneage Street, Helston, Cornwall, TR13 8RD
This website is intended for customers based in the UK and is therefore subject to the UK regulatory regimes. Regulatory required website reporting such as Modern Slavery Statement, Gender Pay and Tax Strategy are all reported on the group’s main website www.helstongarages.co.uk
Copyright © 2019 Carrs Contract Hire & Leasing, All rights reserved.