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29th Mar 2020 - We supply all makes and models at competitive prices please ring or email your exact requirements!
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Business Contract Hire Vehicles from Lakeland Vehicle Solutions

The simple and financially efficient method of financing vehicles for your business

There are huge financial advantages  for many businesses to obtain their vehicles through a contract hire arrangement.  Often called an operating lease, this is a 1 - 5 year rental contract. These agreements are remarkably varied and can be tailored to the exact circumstances and financial strengths of each business client.

Contract Hire Advantages:

  • Reduced capital expenditure
  • Predictable and manageable monthly budgeting
  • Improved cash flow
  • Fixed interest rates
  • Leasing arrangements are an expense that can be offset against business profits. To encourage more sustainable business motoring, cars with  CO2 emissions greater than 130g/km attract a 15% disallowance on the rental amount that can be set against the business' tax bill..
  • Less admin for the business
  • On-going support from your leasing broker
  • Road Fund Licence included (vehicle excise duty paid) throughout life of the contract
  • Optional maintenance package for added peace of mind
  • Optional breakdown cover to cover those long business trips
  • Optional replacement vehicle cover in event of breakdown
  • Optional GAP insurance to cover any shortfall between the outstanding finance amount and the insurance value if the vehicle is declared a write-off by your insurance company after an accident

Disadvantages of Contract Hiring Vehicles:

  • Ending a contract early can be costly
  • Doing more miles than your contract agreement triggers extra charges
  • Vehicle have to be looked after and returned in a well maintained condition or there will be charges to cover "damage" or wear that exceeds the sated standards in the 'Fair Wear and Tear Guide'
  • You must buy fully comprehensive vehicle insurance
  • You will never own the vehicle as there is no option to buy it

More Information on Contract Hire for Business Vehicles:

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.

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