Nissan Contract Hire

Contract Hire finance is one of the most common forms of vehicle leasing as it offers many benefits to your business. It allows you to take on cars or vans for a set period of time, paying a fixed monthly rental. The company taking out the Contract Hire agreement does not own the vehicle, reducing the financial risk to the business and easing the administrative process of buying, servicing and disposing of vehicles.

HOW CONTRACT HIRE WORKS

1. You agree on an advance rental fee usually ranging between 3 - 12 months upfront.
2. You then pay a fixed monthly rental for the duration of the contract.
3. At the end of the agreement, you simply return you vehicle back to us*

*Subject to any excess mileage charges and damages.

BENEFITS OF CONTRACT HIRE FOR YOUR BUSINESS

• Includes Road Fund Licence for the duration of your contract
• Offers flexibility, allowing you to increase your contract term and mileage
• Gives you the option to include, servicing, maintenance and tyres to keep all running costs into one monthly fee
• Reduced VAT paid by your business, as monthly vehicle payments can be offset against taxable profits.
• Vehicles on Contract Hire are classified as ‘off balance sheet’ and therefore has accounting benefits by improving the financial ratios for the business.
• VAT registered businesses are able to claim 100% of the VAT back if the vehicle is used exclusively for business.
• Reduced VAT paid by business, as monthly vehicle payments can be offset against taxable profits.
• Vehicles on Contract Hire are classified as ‘off balance sheet’ and therefore has accounting benefits by improving the financial ratios for the business.
• Or, if the vehicle is used privately, 50% of the VAT can be reclaimed on the finance of the rental.