Benefits of Contract Hire vs Outright Purchase

Finance / Taxation Benefits

/ Accurate monthly budgeting
/ Off balance sheet
/ Improved cash flow
/ Minimum capital expenditure
/ Protect your capital budgets
/ Fixed interest rates
/ Rentals allowable against taxable income, subject to the 'half the excess rule' partial disallowance
/ VAT recoverable on monthly rentals*
/ No depreciation risks as the responsibility for disposal of the vehicle rests with the leasing company.
/ 50% of the VAT relating to the finance element is recoverable if car has private usage. 100% if business only. On contracts with maintenance the service element
/ VAT is recoverable.

From April 2009, carbon emissions of company cars will impact the tax relief available for businesses.

This will replace the current expensive car rule term and will move to a new 15% disallowance for contract-hired cars with CO2's 161 or above, whilst cars with CO2's 160 or below will enjoy no disallowance.

Vehicle Running Benefits

/ No vehicle disposal problems
/ Reduced administration
/ On-going advice and support from Bartletts SEAT
/ Road Fund Licence provided (vehicle excise duty paid) for duration of contract
/ Optional maintenance package
/ SEAT Assistance (Breakdown cover)
/ Optional GAP insurance*
/ GAP insurance (loan/lease payoff coverage) 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.

Tel: 01424 754 444

Benefits of Contract Hire vs Outright Purchase Enquiry