Contract Hire
When considering vehicle finance, be it for business or personal use, it is important to take account of the different finance options available and choose the finance product best suited to your particular business needs.
Contract Hire
Contract Hire is Lease agreement but it differs from a normal lease agreement in that it includes an arrangement agreed at the outset whereby the vehicle is returned to the Tom Hogan Motor Group.
The rentals payable by a business during the Hire period are usually lower than those payable under a standard Finance Lease because the value of the vehicle at the end of the term is taken into account. Similar to a standard Finance Lease, rentals payable under Contract Hire are allowable against tax (subject to current legislation and Revenue limits)
Contract Hire is suitable for most Toyota business vehicles including cars, delivery vans and other Toyota commercial vehicles.
Lending criteria, terms and conditions apply
Benefits of Contract Hire.
Under this type of Lease agreement a business can derive benefit both from a financial and an operating perspective.
The Financial features include :
- The possibility of achieving "Off Balance Sheet" status of the financing arrangement with a possible resultant gearing enhancement and improved return on capital employed.
- Fixed rentals allow accurate budgeting and forecasting and are a protection against interest rate fluctuations.
- Lease rentals are deductible for tax purposes (subject to current legislation).
Operating features include :
- Vehicle maintenance can be included in the Lease Contract, thereby greatly simplifying budgeting and fleet running costs.
- Residual and disposal values risks are eliminated.
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