Questions about Business Car Leasing
Business Contract Hire Short & Long Term Agreements Explained

Contract Hire Leasing (Best Option)

Contract Hire is the only off balance sheet car leasing option offered today. The VAT is recoverable for your business if you are VAT registered and there is no risk of ownership of the vehicle, and there is an optional maintenance package with every car lease in this category. With this option you will have to return the vehicle you leased.

Contract Purchase Leasing

Contract Purchase Leasing is a vehicle leasing option that is best suited to the type of companies who cannot claim the VAT and are not VAT registered. In this category you have the option to purchase the vehicle at the end of the car lease. You may take a Maintenance package which is also available as with the contract hire leasing.


Lease Purchase

If you take a Lease Purchase option the car finance is similar to the contract purchase, however the inflated payment at the end of the contract will be the hirer's responsibility. You will have to keep the car.

Finance Lease

Finance Lease is an on balance sheet car leasing option. Ask your accountant what this is. The VAT is recoverable if you are VAT registered and is suited to those who wish to take the risk of ownership of the vehicle as the hirer is responsible for the end inflated final payment and will have to keep the vehicle.


Contract Options

Whether you choose the Contract Hire Option or the Contract Purchase Option, your choice of a contract which may or may not include a maintenance agreement will differ in cost depending upon two main criteria, the anticipated mileage that you will be clocking up and the length of hire.

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