Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts range from 12 to 60 months and are tailored to the businesses requirements.
The Contract Hire Company reclaims the VAT on the original purchase, which reduces your monthly rentals (which are + VAT). Contract Hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use, no exempt turnover and not being on the Flat Rate VAT Scheme).
On contracts with maintenance the VAT on the service element is 100% recoverable. One of the major benefits is that there are no disposal worries as the future value is underwritten by the leasing company. Another benefit of Contract Hire is that it is generally 'off balance sheet funding' (subject to legislation change) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
T: 0333 344 7363
F: 0370 240 3700
Mann Island Finance
Corporate Vehicle Services
5 St Paul's Square
Mann Island Finance Limited is part of the Investec group of companies. Authorised and regulated by the Financial Conduct Authority for credit-related regulated activities. Mann Island Limited is a credit-broker, not a lender. Registered office: Reading International Business Park, Reading, RG2 6AA. Registered in England. Company registration no. 02750308. Business customers may not be protected under the Consumer Credit Act 1974 or the rules of the Financial Conduct Authority.
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