Contract Hire leasing is one of the most popular methods of vehicle leasing. Customers are able to hand their Mercedes-Benz back at the end of the term and replace it with a newer model using another Contract Hire agreement. It is perfect for VAT-registered companies which are looking for secure and flexible financial commitments for their fleet.
How Contract Hire works
Leasing with a Contract Hire agreement is straightforward and easy. The fixed monthly rental cost is agreed over a fixed term. The rental cost will consider the estimated annual mileage of the selected Mercedes-Benz, the difference between the initial value of the vehicle and the predicted value at the end of your agreement. When the term of your Contract Hire draws to an end you can return your Mercedes-Benz car at no extra cost, provided the vehicle has not exceeded its mileage allowance.
Advantages of Contract Hire
Gives you the chance to update your Mercedes-Benz every two to three years, meaning you will never be behind on the latest smart technology or safety features.
Easy to budget fixed monthly payments
Annual mileage based monthly payments agreed at the start of your agreement
If your organisation is VAT-registered, you can claim back 100% of VAT paid on the car if there is no personal usage and 50% of the VAT where the car is used for both business and personal use. 100% of the VAT can be recovered on the maintenance element, so you can benefit from more tax-efficient VAT, Vehicle Excise Duty, and Benefit in Kind levies.
A Contract Hire agreement is an excellent option for businesses with quick changing fleets, who are looking to minimise short-term expenditure.
What to do at the end of your agreement
Simply return your Mercedes-Benz to us at Lookers Business Solutions with nothing more to pay, subject to return conditions being met and the agreed contract mileage not being exceeded.
If you need further information regarding Contract Hire please do not hesitate to contact your local Lookers Business Solutions retailer.