Contract Hire

Quite simply this is just a way of hiring a vehicle of your choice over a specified period – normally two or three years. Vehicle rental payments are low so you only pay for its use and most ‘all in’ Contract Hire arrangements now include the cost of everything to do with running the vehicle servicing, repairs, breakdowns and ‘loan cars’, depreciation and disposal. You can even include road tax and membership of a motoring organisation if you wish. You normally just pay for petrol, insurance, ‘topping up’ oil and accident damage. There are fixed monthly payments for the duration of the contract.

For	Against
Pre-determined costs ‘smooth out’ cashflow Capital or loan resources are freed for more important ventures No purchasing or disposals ‘hassles’ – and constant mobility There are tax advantages – you can claim VAT back on rentals In most cases the vehicle will not be shown on your Balance Sheet Lease rentals are allowable against corporation tax No depreciation or operating cost risk	You never own the vehicle – you just have use of it Some tax allowances can be disallowed for expensive cars

For

Against

Pre-determined costs ‘smooth out’ cashflow
Capital or loan resources are freed for more important ventures
No purchasing or disposals ‘hassles’ – and constant mobility
There are tax advantages – you can claim VAT back on rentals
In most cases the vehicle will not be shown on your Balance Sheet
Lease rentals are allowable against corporation tax
No depreciation or operating cost risk

You never own the vehicle – you just have use of it
Some tax allowances can be disallowed for expensive cars

Find out if Dews is for you:

Dews Contract Hire & Fleet
The Dews Difference
Contract Hire Options
- Funding Options
- Comparisons Chart
- Current Offers
Fleet Options

CONTACT US

For more information regarding Contract Hire and Fleet, please contact Geoff Newton on 0844 7705628.

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