Contract Hire An operating lease in which the loss of value of the vehicle is guaranteed over a fixed term Can either include or exclude a maintenance package.

Benefits Things you need to know Large VAT savings as the leasing company claims back the VAT when buying the vehicle. One payment covers most costs thereby providing better cash flow forecasting. Enjoy manufacturer bonuses and fleet purchase discounts where available. Freedom from disposal worries and risk as this is the job of the leasing company. Off balance sheet financing which is useful when your company has high borrowings elsewhere. No more administration and risk as maintenance, mechanical repair, replacement car, breakdown recovery, RFL renewal, tyres, batteries and exhausts can be part of the package. It is a fixed contract to term and mileage but this can be changed by amending the rental. There will be a charge if you return the vehicle early. If you damage the vehicle, it needs repairing and it is your fault then this is not covered under the maintenance contract. Glass and windscreen replacement is not covered under the maintenance contract. Not all the rentals you pay can be offset against your company profits, as there is a sliding scale restriction on the allowances for more costly cars. 50% VAT recovery on the finance rentals you pay. If you return the vehicle in a damaged condition and it affects the resale value then you may be liable for the bill.