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 : email@example.com
Telephone : 01473 554201
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JGLeasing is a trading name of John Grose Group Ltd. Registered Office: Whapload Road, Lowestoft, Suffolk NR32 1NN Registered number 01491537. Authorised and regulated by the Financial Conduct Authority, reference number 311058. You can check this on the FCA’s website www.FCA.org.uk/register or by contacting the FCA on 0300 5008082. John Grose Group Ltd is a credit broker but not a lender. In the event a financial services complaint cannot be settled between us, you may refer to the Financial Ombudsman Service. This service is free to use. Their contact details are Financial Ombudsman Service, Exchange Tower, London E14 9SR; telephone 0800 0234567 or 0300 1239123; email firstname.lastname@example.org; and their website is www.financial-ombudsman.org.uk. In the event a non-financial services complaint cannot be settled between us, we recommend the National Conciliation Service as an organisation competent to deal with unresolved complaints. Their contact details are National Conciliation Service, 2 Allerton Road, Central Park, Rugby, CV23 0PA; telephone 01788 538317; email email@example.com. Additionally, as a member of the BVRLA - you are also able to refer any unresolved complaints for their investigation. Their contact details are: British Vehicle Rental and Leasing Association, River Lodge, Badminton Court, Amersham, HP7 0DD. Telephone; 01494 434747. Email: firstname.lastname@example.org
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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