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.
* Churchill Vehicle Leasing Ltd - our registration number is 07444368. We authorised and regulated by the Financial Conduct Authority. Our firms reference number is 727960. We are also an Appointed Representative of AutoProtect (MBI) Limited which is authorised and regulated by the Financial Conduct Authority for Insurance Mediation, their reference number is 312143. You can check both on the FCA Register by visiting the www.fca.org.uk or by contacting the FCA direct on 0300 500 8082. 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. E-OE
01903 20 50 30
F: 0872 115 8045
Churchill Vehicle Leasing Ltd
11 North Street
Churchill Vehicle Leasing Ltd are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 727960
Registered in England & Wales with company number : 07444368 | Data Protection No : Z2456474 | VAT No : 103577529 | Credit Licence (Number 727960) Issued by the FCA (Financial Conduct Authority),
Registered Office : 303 Goring Road, Worthing, BN12 4NX
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