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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

Amelia,

I wanted to say thanks for all your help throughout the process of getting my new Tesla 90D. From the start of the first call you demonstrated a perfect balance of being friendly and helpful while fast and efficient. The way you kept me informed each step of the way was exemplary - telling me what you would do, what would happen next and then confirming when it was done.

I've recommended you already and will continue to- well done and thank you for all your help.

Kind Regards,

Rob Pickering

Rob Pickering

Pete,

Thought the A7 was a good car but this is just a different league!!

I feel like a super star in it!!!

Thank You,

Martin McDade-Smith

Martin McDade-Smith

Dear Marvin,

Thank you so much for your exceptional efforts to ensure that I received my car today. I know that it was a tall order but I am very pleased and all went according to plan today.

I know that people often don't seem to appreciate all the work that people put into these things but please believe me when I say that I am very, very grateful.

If you have a manager that you can pass this message on to, please do so - in this day and age people always forget to say when service is good.

Thank you so much.

Lia

Lia Copestake

Peter,

Just wanted to say thanks again for giving us a fantastic service and helping us chose a vehicle and colour that's absolutely amazing! We love it!

Kind Regards,

Andy & Lucy Minas

Andy & Lucy Minas

Stuart,

Thank you for a quick and easy order process. Sorted out in a day. My wife is very much looking forward to her new car.

Kind Regards,

Ian

Ian Johnson

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

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

Pete,

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


Kevan

Kevan

Peter provided exceptional service and provided me with the Clubman at an amazing price.

I highly recommend Total Motion if you're looking to lease a vehicle at a great price. A very friendly team that were always happy to help me find the perfect solution.

Thanks a lot!

Jenny Cross

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

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