GCH2000 contract vehicle hireGCH2000 free vehicle lease hire quote call 0845 123 5855GCH2000 free contract vehicle hire quote

Contract Hire Contact Numbers

0845 123 5855 (Local call rate)
0116 273 4759 (Normal call rate)
0116 293 8188 (Local call rate)


British Vehicle Rental and Leasing Association

Leicestershire Chamber of Commerce

Contract Hire Finance Options

Choosing the right finance package for you...

Many people wonder what the real difference is between finance types. We have included this basic breakdown to assist you to decide which one may be best for you.

Outright Purchase Lease Purchase / Hire Purchase Finance Lease Contract
Hire		 Contract Purchase
Who owns the vehicle? The Customer The Funding Company until the final payment is made The Funding Company until the final payment is made The Funding Company The Funding Company until the final payment is made
Who carries the Residual Value risk? The Customer The Customer The Customer The Funding Company The Funding Company
Who carries the ongoing Maintenance risk? The Customer The Customer The Customer The Funding Company assuming a maintenance contract is taken The Funding Company assuming a maintenance contract is taken
Is the vehicle on or off the balance sheet? On balance sheet On balance sheet On balance sheet Off the balance sheet On balance sheet
Typically, how much cash is required up front? 100% of vehicle purchase price Typically 15% of purchase price Typically 15% of purchase price Typically 6-7% of the purchase price (i.e. 3 months advance rental) Typically 6-7% of the purchase price (i.e. 3 months advance rental)
Who arranges delivery and collection of the vehicle? The Customer The Customer The Customer The Funding Company The Funding Company
Does the customer own the vehicle at the end of the contact? Yes Yes No No Yes, if the final lump sum purchase payment is made
Can the monthly payments be offset in full against tax? There are no monthly payments. Capital Allowances can be offset against tax but are limited to 25% or the vehicle price or £3000 per annum whichever is the greater. The finance element can be offset. Capital allowances are available as per "outright purchase" All of the monthly rentals may be offset against tax. For vehicles costing over £12,000 a proportion is disallowed. All of the monthly rentals may be offset against tax. For vehicles costing over £12,000 a proportion is disallowed. In addition 100% of the maintenance payments may be fully offset. The finance element is allowable with no rental restriction for cars over £12,000. Capital Allowances are also available.
Assuming some private use, what % of input VAT can be reclaimed? None None 50% of the VAT on rental payments. 100% of the VAT on maintenance. 50% of the VAT on rental payments. 100% of the VAT on maintenance. None


I often get asked: "Does leasing really beat buying...?"

Well, when the 24-month forecasted depreciation is significantly more than the cost of the 24-monthly rentals for the same new car, then the answer is: "Of course it does...!". Here's an example on one of our depreciation-beating deals at the moment:

Here's an example of why Contract Hire is so popular:

New BMW 3 SERIES COUPE 320i SE 2dr - £ 26,490.00 on the road including Metallic Paint
Used BMW 3 SERIES COUPE 320 Ci SE 2dr - CAP Book Value £ 14,200.00 (2-years old with 20,000 miles)
Difference between current new price and current used price £ 12,290.00

Our leasing deal on the same new car:

Initial rental (3) + 23 rentals of £299.99 + VAT (based on 10,000 miles per annum)
Total rentals payable = £ 9,164.70 inc VAT

Saving over 24-months = £ 3,125.30

NB: And you can reclaim 50% of the VAT on the monthly rentals if you're VAT registered.

It's that simple...!

Plus:
We deliver to your door - nationwide
Road Tax is included for the duration of the contract*
All cars are brand new UK supplied (no imports)
*In some instances RFL is only included for the first year.