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Business Contract Hire

A simple and cost effective way to fund any number of vehicles

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.

Advantages:

  • Minimum capital expenditure
  • Accurate monthly budgeting
  • Improved cash flow
  • Fixed interest rates
  • Rentals can be offset against the businesses profits. Cars with a CO2 output above 130g/km are currently subject to a 15% disallowance on the amount of the rental that can be claimed against the businesses taxation, for contract-hired cars with a CO2 output of 130g/km or below, there is currently no disallowance.
  • Reduced administration
  • On-going advice and support
  • Road Fund Licence provided (vehicle excise duty paid) for duration of contract
  • Optional maintenance package
  • Optional breakdown rescue cover
  • Optional replacement vehicle cover in event of breakdown
  • Optional GAP insurance which provides cover for the shortfall between the outstanding finance and the insurance value if the vehicle is declared a write-off by your insurance company

Disadvantages:

  • Early termination can be expensive
  • If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
  • You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the 'Fair Wear and Tear Guide'
  • You must have fully comprehensive vehicle insurance
  • You will never own the vehicle as there is no option to buy it

More Information on Business Contract Hire:

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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Testimonials

John,

Thank you for sourcing us a commercial company vehicle at a price we felt was affordable and competitive along with the added maintenance package.

You are someone we can trust explicitly and whose knowledge of the motor leasing trade second to none, he was able to find a great discount on our vehicle which other leasing companies could not.

The whole buying process was quick and easy and John was able to talk us through the whole process in advance so we knew what to expect.

All in all, John is a great person to work with and we will have no hesitation in referring all future car leasing needs to him.

Simon Hinks

Alex,

Thank you for managing to find a physical car with the exact specifications my wife wanted, something no other company could achieve. Also, for having patience with a very awkward and hard to please customer! Can't recommend this company highly enough! Fantastic from beginning to end.

Paul Sharpe

Pete,

Thank you for sorting out the new van! It drives like a ferrari!


Kevan

Kevan

Dear John,

I’d like to take this opportunity to thank you for your assistance over the last few years and in particular in dealing with the sourcing of my most recent car.

Having dealt with you to source my previous 2 cars, going back to 2010, I was well aware of your high level of customer care and attention to detail which is very important to me.

During the period of my previous lease, you also regularly monitored my situation, and I therefore had no hesitation to use you to provide my replacement car.

Once again, the service and support you provided was first class, and at all times I was kept informed as to the progress of my order, and also advised regarding the return of my existing car, although this wasn’t actually part of your responsibilities.

I have in the past recommended you to both colleagues and clients, and I will continue to do so based upon your ongoing excellent service and the feedback I also get from others.

Yours Sincerely,

Mark East

MOORE THOMPSON

Mark East

Peter,

Just a THANK YOU!

Truck delivered all as promised, communication excellent.

Kind regards


Chris

Chris

Kieran,

The service which I have received was excellent. He kept me informed and promptly answered all my questions in a helpful manner.

I would not hesitate to recommend your company to anyone.

Naveed Zafar

This is my first time leasing a vehicle and Stuart has been absolutely fantastic in explaining and sourcing the best deal for my first car. Any question I've asked or change that I've asked for (within reason), Stuart has sorted professionally and quickly. The communication via the company is brilliant and the whole ordering process is simple and easy. I'm looking forward to receiving my car and would definitely recommend Total Motion to anyone. Stuart Conway deserves personal recognition from the company for his excellent service.

Stuart

Amelia,

Thank you so much for organising a car for my fastidious neighbour and dealing with him in such a professional and patient manner- he was really impressed!

I also want to thank you for the professional and friendly way you have dealt with the contract for my own car which is due for delivery shortly.

Gail Siddall

Hi Emma, just want to thank you for everything you did sorting out our new cars, we took delivery today and there great. The whole thing from 1st speaking to you on the phone 6 weeks ago has gone brilliantly without fuss, great communication from everyone involved along the way. I will definitely recommend Total Motion to friends and hopefully being getting in touch myself in 3 years to go through it again with new vehicles. Many thanks again, Lee

Lee

Stuart was absolutely brilliant, my first time leasing a vehicle, he explained everything really well and the transaction went like clockwork. Would recommend to anyone looking to lease. The most efficient company I've dealt with ever!

Nicky Smith

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