Business Contract Hire Explained
Business Contract Hire (also known as Business Leasing) agreements are a cost effective way of funding a single company car or a fleet of business vehicles. Simply choose a vehicle that fits your needs or those of your employees, decide whether you would like a 2, 3 or 4-year term and estimate your annual mileage.
To make your experience even easier, you can include servicing & maintenance costs in the monthly payment.
Contract hire is suitable for sole traders, partnerships and especially limited companies, who are able to claim back 50% of the VAT on vehicle payments and 100% of VAT on maintenance costs.
Benefits of Business Contract Hire
There are many advantages to choosing business contract hire over purchasing vehicles outright:
- Fixed monthly payments
- Frees up capital that would otherwise be tied up in asset purchases
- No disposal headaches - simply hand the car back at the end of the term
- Allows regular vehicle replacement
- Cost-effective way to acquire luxury vehicles for business use
- Servicing and maintenance costs can be included in the monthly payments
This is in addition to driving a modern, fuel efficient car with all the latest safety technology.
Choose from leading luxury car brands
Frequently Asked Questions
You will pay an initial rental and a fixed monthly amount for the duration of the contract, at the end of which you are able to simply hand the keys back and walk away with nothing more to pay, or start again with another new model from our range.
The initial rental is up to you - put in a higher amount at the start of the contract to bring down the monthly repayments or spread the cost over the entire term.
The length of your contract is flexible to suit your business' requirements and can be over a period of 24, 36 or 48 months. Your monthly rental payments are based on an agreed annual mileage.
An annual mileage allowance is agreed at the beginning of the term, and is tailored to suit you. The minimum mileage we offer is 6,000 miles per annum. The maximum mileage we offer is 150,000 miles over the duration of the contract.
Please note that exceeding the maximum mileage limit may result in excess mileage charges at the end of the contract, so it is important that you accurately estimate the distances you will travel throughout the duration of your deal.
Vehicle Excise Duty (also known as Road Tax) is included in the cost of the monthly repayments.
The finance provider is the owner of the vehicle, meaning you cannot sell the car nor do you have any concerns regarding end of term disposal.
It is possible to terminate Business Contract Hire agreements early but early termination fees usually apply and they can be significant.
Why choose Stratstone for your next Business Contract Hire deal?
As one of the UK's leading prestige vehicle suppliers, we have some of the best Business Contract Hire deals on the market across a wide range of luxury cars, all of which can be delivered to your home or workplace.
On top of that, we understand that deciding on a new company car or fleet vehicle can be a complicated process, particularly when taking legislation, operational priorities and tax allowances into consideration. That is why we have dedicated business specialists who are trained to simplify the process using their contract hire expertise, allowing you to enjoy the experience of acquiring a premium vehicle.
Explore our exceptional Business Contract Hire rates today.
