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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

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

Byron was professional and knowledgeable throughout and nothing was too much trouble. Can't speak highly or recommend him enough!

Dave Parker

Marvin,

I am so thrilled with the car! It is everything I had hoped for, so roomy especially as my son and daughter-in-law are about to have twins, so I will be able to help them lots.

Your service has been brilliant, you, in particular, have been so patient with the process. The delivery man was charming. I will absolutely recommend you to others.

Kind regards

Charline

Charline Addison

What a service, Stuart and Natasha are superb. Can't recommend these guys enough.

Simon Shakeshaft

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

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

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

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

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


Kevan

Kevan

The whole process was simple and smooth from start to finish, Kieran answered all my questions and left no stone unturned.

Usama Elmi

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