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Business Leasing Contract Hire Explained
Contract hire explained
At Dick Lovett BMW and Dick Lovett MINI our experts are on hand to help guide you through every aspect of business leasing and contract hire, whether you’re a business owner, fleet manager or you receive a company car allowance.
Business contract hire, also known as business leasing, allows a company to lease cars for a set period of time and pay by monthly instalments. The rental cost is reduced because the business lease provider reclaims the VAT on the car or fleet you choose and then passes the saving on to you.
The business doesn’t own the car, so it’s off the company’s balance sheet and is simply returned to the lease provider at the end of the contract term. It’s also available to those who are self-employed.
Flexible business leasing
Business leasing is suitable for sole traders, partnerships and limited companies and can be used to fund a single company car or a fleet of company vehicles. It’s a particularly popular option for VAT registered companies, as they can claim back 50% of the VAT on vehicle payments and 100% of the VAT on maintenance.