If you go over your contracted mileage you will be faced with charges.Your vehicle is delivered to you and then collected from you at the end of the contract.Road Fund Licence is covered for the duration of the contract of hire.The costs of maintenance, servicing and tyres over the period can be added on to your contract hire rentals.In both cases ask your accountant if this applies to you For some vans 100% VAT can be recovered from maintenance and Finance Rental.For some VAT registered businesses 50% of the finance rental VAT and 100% of the Maintenance Rental VAT is reclaimable for cars.Allows for accurate budgeting over the term of hire.Contract lengths range from 12 to 60 months.

The difference between the cost of the vehicle new and the residual value is what you will pay over the term of hire.Īt the end of the lease contract the vehicle is simply collected, and you can either choose a new one or just walk away. The fixed monthly payments are based on your chosen vehicle, your total mileage over the lease and the end value of the vehicle (Residual Value). It is an efficient long term method for hiring a new vehicle without the initial outlay of purchasing or the hassle of trading once it’s time for an upgrade.ĭuring the period of hire you do not own the vehicle at any point, you pay fixed monthly ‘rentals’ and if your company is VAT registered you can reclaim portions of the VAT back (more below). Vehicle Leasing is the most popular method of acquiring a vehicle for businesses needs.

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