The funding of company vehicles, regardless of fleet size, can be a significant drain on financial and human resources, especially at a time when resale values are increasingly volatile. Contract hire can remove both the financial and administrative burden from your business.
It can deliver a tax-efficient form of funding which eliminates risk and smooth’s cash flow.
Your company hires a vehicle from us for a pre-determined period at a fixed monthly rate.
The finance house retains ownership and at the end of the fixed period the vehicle is simply returned to us.
The single, fixed monthly rental takes into account the cost of the car, its rate of depreciation, the length of the contract, mileage and any additional services you may wish to build in.
The majority of our customers choose to include maintenance cover, with full RAC breakdown and recovery service, keeping drivers on the road without involving the company in complex or costly administration.
Many companies are now looking at the benefit both to the business and to their drivers of offering an alternative to the company car. An obvious solution is an additional cash payment to the driver for them to provide their own vehicle for business use. However, this can bring with it an amount of uncertainty and introduce problems for those drivers accustomed to running a fully expensed company vehicle.
Personal Contract Purchase (PCP) offers your drivers all of the benefits they associate with a company car, without the personal tax burden. An integrated PCP package can ease the driver’s transition from a company vehicle to one of their own.
A Finance Lease can be a cost-effective way of funding vehicles, having similar VAT and Corporation Tax benefits to Contract Hire, but the risk and responsibility for resale at the end of the term remains with you.
If your company is restricted in the amount of VAT it is able to reclaim, or you have several expensive (typically in excess of £25k)* cars in your fleet, it may make financial sense to retain ownership of your vehicles. This, however, exposes your business to all of the risks inherent in administering, maintaining and particularly disposing of a fleet.
Contract Purchase offers all the operational, managerial and administrative benefits of Contract Hire, together with the tax-efficient benefits of ownership, such as the ability to claim capital allowances.