Contract hire offers businesses (and to some extent individuals) valuable tax incentives (VAT-registered companies can claim back 50% of the VAT on the lease payments) and reduced levels of administration. Packages can offer comprehensive vehicle management and a regular monthly payment structure which smooths cash flow and makes budgeting much more accurate.
Contract hire packages include the sourcing, finance and eventual disposal of the vehicle and can be tailored to include car maintenance (tyre replacement, AA/RAC recovery and general maintenance) and provision of a replacement vehicle in the event of a breakdown.
The car leasing finance company removes all the stress by dealing with all of the details of contract hire, from vehicle management to optional vehicle maintenance. Thanks to the numerous discounts and other advantages of contract hire, the UK market is particularly healthy, with some finance companies having more than 500,000 cars under management.