Contract hire is ideal if your business prefers to hire rather than own. It is simply an agreement where a rental is paid in return for the vehicle over one, two, three or four years. It also relieves you of the time-consuming administration to selling it or worrying about its value in the future.
Furthermore, if you are a VAT registered business then a proportion of the rentals may be tax deductible. As contract hire is classified as an operating lease for current taxation purposes, it is regarded differently to ‘purchase’ contracts so that you may benefit from certain tax advantages.
If you’re interested in hiring your Audi rather than owning it, then Contract Hire may be perfect for you. You simply pay a monthly rental for the vehicle, or change it on a regular fixed period. You’ll also benefit from Driverline, a dedicated 24-hour telephone service designed to help you when you need assistance.
Once you have chosen your vehicle and initial rental, there are three simple decisions to make that will effect your monthly rental payments:
- Your rental payment period – choose any period between 12-48 months
- Mileage per year – choose how many miles you expect to drive each year*
- Servicing – choose to include a service, maintenance and tyres plan in your agreement
When all outstanding rentals are paid, you simply hand your vehicle back, subject to fair wear and tear and excess mileage charges. There is no additional final payment at the end of the agreement.