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.
Email : firstname.lastname@example.org
Telephone : 01423 853000
Company Address :
Fullservicelease.co.uk is a domain name of Lookers Leasing which is a trading name of Lookers Leasing Limited an appointed representative of Lookers Motor Group Limited (LMGL) which is authorised and regulated by the Financial Conduct Authority for credit broking and insurance distribution activities. LMGL financial services register reference number is 309424. LMGL is a credit broker, not a lender and can introduce you to a number of lenders from whom it may receive a commission.
Registered in England & Wales with company number : 5654532 | Data Protection No : Z9441737 | VAT No : 405 9783 29
Registered Office : Lookers House, 3 Etchells Road, West Timperley, Altrincham. WA14 5XS
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.
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