Fiat Punto 1.2 8V Active 3Dr. £99 + VAT per month based on Contract Hire Non Maintenance 3+35 10,000 miles p.a.
Contract Hire
Releases Capital
Capital currently tied up in ownership
of vehicles is released into the business.
Protects Existing Credit Lines
Contract hire provides the customer with an extra credit line. Customers can acquire vehicles as and when they need them, without increasing the level of existing borrowing.
Tax Allowable
On a car costing up to £12,000 the total rental can be allowable against taxable profits. This allowance reduces for more expensive cars.
VAT Recoverable
In most cases, 50% of the VAT can be reclaimed on the monthly rental.
Off Balance Sheet
Contract Hire is an operating lease and therefore the vehicle is not capitalised on the balance sheet. This is an advantage to Companies for whom the rate of return on capital employed is important.
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