Contract Hire

Why choose contract hire? 

Contract hire doesn’t require a big chunk of cash – either from your own coffers or a loan – as the cost is spread out over the fixed term of a contract. You’ll just need to put up a deposit (sometimes called initial rental) and, that can be as big or as small as you want. No matter the size of the deposit, the overall cost will not change.

Fixed monthly costs

The key benefits of contract hire are it gives you a fixed monthly cost that makes budgeting easy and it removes the cost of a van from the company’s books. It can also help free up vital capital by lowering the company’s outgoings because contract hire needs only a small initial outlay of money to start the deal. The small upfront payment is because the company that hires the van to you will sell it at the end of the agreed period and recoup more of its outlay, which can be offset against what you pay.

Tax advantages of contract hire

One of the tax advantages to leasing a van can include claiming up to 100% VAT back on the monthly payments, if your business is a VAT-registered business. This is provided that the van is only for business use.

And like buying a van, you can claim the cost of van rental as an expense when it comes to filing your tax return. Your rental payments can be a tax-deductible expense.

Contract hire is for you if...

• You want fixed monthly costs.
• You don't want any large upfront payments.
• You want to drive a brand new van with full manufacturers warranty.

Contract hire is quickly becoming one of the most popular ways to drive a new van. All vans supplied by us come with manufacturers warranty and, don't forget, when you choose to lease, the overall cost will never change no matter how much of a deposit you choose to put down.