Contract hire is popular method of vehicle leasing, because it allows companies to benefit from a lack of bureucratic obligations. Being able to hand in your old smart at the end of the term and replace it with a newer model using another contract hire deal makes things easy. It is also perfect for VAT-registered companies which are looking for secure and flexible financial commitments for their fleet.
How Contract Hire works
Contract Hire is straightforward and easy - fixed monthly rental cost over an agreed term. The rental cost will consider the estimated annual mileage of the selected smart, and you will have the option of including a maintenance plan for added security. Once the agreed term has finished you can return your smart 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 smart every two to three years, meaning you will never be behind on the latest smart technology or safety features.
No large initial outlay which is usually the equivalent of one to three monthly rentals
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, so you can benefit from more tax-efficient VAT, Vehicle Excise Duty, and Benefit in Kind levies.
A Contract Hire deal is an excellent option for business with quickly changing or updating fleets, who are looking to minimise short-term expenditure.
What happens at the end of your agreement
Return your smart to us with nothing more to pay, subject to return conditions being met and the agreed contract mileage not being exceeded.
To find out more about our Contract Hire offers contact us today or speak to an advisor on out live chat link above.