Car Leasing Information

What is Contract Hire?

Contract Hire is the businessman's simple solution for vehicle funding. This is in the form of a lease/hire, for cars or commercial vans and is available to all types of businesses. Contract hire enables Sole traders, Partnerships and Ltd Companies to acquire their vehicles without the financial risk of depreciation on what would normally be a large capital outlay. This form of hire therefore allows the release of tied up capital for more beneficial use within the company creating the optimum cash flow. For a more comprehensive view into what is contract hire? Please click here.

Who owns the vehicle?

The finance supplier owns the vehicle during the contract period. We can offer you a purchase price to buy the vehicle from us as a third party after the contract terminates.

How much cash is required up front?

Minimum outlay (usually equivalent to three monthly rentals) improves cash flow (Six months may be required for a new-start business).

Who carries the burden of depreciation on the vehicle?

The finance supplier owns the vehicle and therefore they take the risk and responsibility for any loss incurred relating to the residual on the value of vehicle.

Who insures the vehicle?

The customer / user must insure the vehicle with a fully comprehensive business policy making sure all their specific uses for the vehicle are covered.

Who orders the vehicle?

We undertake to source your vehicle from our contacts in the industry at full fleet discount, including any specific promotions/support available at the time. Should you have a local, preferred supplier, we would be happy to order the vehicle from them on your behalf assuming they could comply with our fleet discount.

What about vehicle delivery and collection?

We arrange free delivery and collection anywhere in the mainland UK.

Is the vehicle cost on or off the company balance sheet?

Contract Hire guarantees that vehicles will be off the balance sheet. This has the following advantages:

  • Reduces capital outlay
  • Reduces company investment level, thereby increasing return on investment ratio this will make the company look a stronger performer in the eyes of investors, including, of course, the banks.
Can the monthly payments be offset in full against Corporation Tax?
For cars emitting 160g/km or less
lease rental 100% fully allowable
against lessees business
expenses regardless of cost.
For cars emitting 161g/km or
more 85% of finance element of
lease allowable against
lessees business expenses regardless of car cost.

Commercial vehicles are not affected by this rule and the rentals are allowable in full irrespective of the cost of the vehicle. In the case of Contract Hire agreements with full maintenance the maintenance costs of the rental for cars and commercials can be offset against tax as a separate item.

Are there any VAT advantages to Contract Hire?

Yes! If your business is VAT registered you can also claim back up to 50 percent of the VAT charged on the finance of the vehicle and up to 100 percent the VAT charged on the maintenance applicable when the vehicle is for business and private use. For vans/commercial vehicles used solely for business purposes the hirer may claim 100 percent of the VAT on both the finance and the maintenance.

Who pays the ongoing maintenance costs?

If a non-maintenance contract is chosen, the customer is responsible for all routine servicing and maintenance costs under the terms of the agreement. However, the payment for the annual road fund licence is covered for the full contract period. When a full maintenance package is taken all servicing or maintenance costs are inclusive allowing the customer more time to run their business, rather than worrying about the running of vehicles.

Can I terminate of the contract hire agreement early?

Yes, however, contract hire is a fixed term agreement intended for a specific time-span and can therefore carry some penalty if terminated prematurely.

What options are available at the end of the agreement?
  1. Hand the vehicle back and replace it with a new one.
  2. Extend the contract for a further six-months, or 12 months, usually at a reduced rate.
  3. Ask for a purchase price to buy the vehicle as an individual through us as a third party (The Company cannot purchase the vehicle due to the tax advantages that have already been enjoyed.)
Is there anything to pay at the end of the agreement?

Charges are made only if the vehicle has done more miles than originally contracted to do. This is the excess pence per mile charge (ppm), which will be written on the contract hire agreement and will vary from vehicle to vehicle. To avoid this charge we encourage customers to advise us during the vehicle leasing term if they feel that more or fewer miles than originally expected are likely to be done and we will amend the contract accordingly provided there are still 6 monthly payments to go before the contract hire and leasing agreement is due to terminate .The only other charge would be if the vehicle had been damaged and not repaired.

Instant Car Leasing Quote

Our quote generator lets your search over 13,000 vehicles. Go ahead and see for yourself.

MERCEDES-BENZ A CLASS DIESEL HATCHBACK A180d AMG Line 5dr Auto
A180d AMG Line 5dr Auto
From Only
£190
Per Month Exc VAT
JAGUAR F-PACE DIESEL ESTATE 2.0d R-Sport 5dr Auto AWD
2.0d R-Sport 5dr Auto AWD
From Only
£324
Per Month Exc VAT
JAGUAR E-PACE DIESEL ESTATE 2.0d R-Dynamic 5dr 2WD
2.0d R-Dynamic 5dr 2WD
From Only
£209
Per Month Exc VAT
NISSAN QASHQAI DIESEL HATCHBACK 1.5 dCi N-Connecta [Glass Roof Pack] 5dr
1.5 dCi N-Connecta [Glass Roof Pack] 5dr
From Only
£170
Per Month Exc VAT
FORD FIESTA HATCHBACK 1.1 Zetec 5dr
1.1 Zetec 5dr
From Only
£134
Per Month Exc VAT
CITROEN C3 AIRCROSS HATCHBACK 1.2 PureTech Feel 5dr
1.2 PureTech Feel 5dr
From Only
£140
Per Month Exc VAT
HONDA JAZZ HATCHBACK 1.5 i-VTEC Sport 5dr Navi CVT
1.5 i-VTEC Sport 5dr Navi CVT
From Only
£141
Per Month Exc VAT
VOLKSWAGEN T-ROC HATCHBACK 1.0 TSI SE 5dr
From Only
£180
Per Month Exc VAT
VOLKSWAGEN POLO HATCHBACK 1.0 SE 5dr
From Only
£140
Per Month Exc VAT
AUDI Q5 ESTATE 2.0T FSI Quattro S Line 5dr S Tronic
2.0T FSI Quattro S Line 5dr S Tronic
From Only
£330
Per Month Exc VAT
VOLKSWAGEN GOLF DIESEL HATCHBACK 1.6 TDI SE 5dr
From Only
£175
Per Month Exc VAT
LAND ROVER RANGE ROVER EVOQUE DIESEL HATCHBACK 2.0 eD4 SE 5dr 2WD
From Only
£255
Per Month Exc VAT
NISSAN JUKE DIESEL HATCHBACK 1.5 dCi Bose Personal Edition 5dr
1.5 dCi Bose Personal Edition 5dr
From Only
£170
Per Month Exc VAT
VOLKSWAGEN ARTEON DIESEL FASTBACK 2.0 TDI R Line 5dr
From Only
£245
Per Month Exc VAT
VOLKSWAGEN TIGUAN DIESEL ESTATE 2.0 TDi BMT 150 4Motion R Line 5dr DSG
2.0 TDi BMT 150 4Motion R Line 5dr DSG
From Only
£275
Per Month Exc VAT
HYUNDAI TUCSON SPECIAL EDITIONS 1.6 TGDi Go SE 5dr 2WD
1.6 TGDi Go SE 5dr 2WD
From Only
£200
Per Month Exc VAT
SEAT LEON HATCHBACK 1.4 TSI 125 FR Technology 5dr
1.4 TSI 125 FR Technology 5dr
From Only
£154
Per Month Exc VAT
HONDA JAZZ HATCHBACK 1.3 i-VTEC SE 5dr
1.3 i-VTEC SE 5dr
From Only
£110
Per Month Exc VAT
FIAT 500 HATCHBACK 1.2 Lounge 3dr
1.2 Lounge 3dr
From Only
£100
Per Month Exc VAT
SEAT ATECA DIESEL ESTATE 2.0 TDI Xcellence 5dr 4Drive
2.0 TDI Xcellence 5dr 4Drive
From Only
£215
Per Month Exc VAT
RENAULT CLIO HATCHBACK 0.9 TCE 90 GT Line 5dr
0.9 TCE 90 GT Line 5dr
From Only
£138
Per Month Exc VAT
PEUGEOT 108 HATCHBACK 1.0 72 Active 5dr 2-Tronic
1.0 72 Active 5dr 2-Tronic
From Only
£120
Per Month Exc VAT
SEAT ARONA DIESEL HATCHBACK 1.6 TDI 115 SE Technology Lux 5dr
1.6 TDI 115 SE Technology Lux 5dr
From Only
£150
Per Month Exc VAT

How Does Leasing Work?

1
Choose Your Car

Choose a car you like and either enquire online or phone a member of the team

2
Quote

One of our Vehicle Leasing Specialist will send you a quote via e-mail

3
Proposal

If you're happy with the price quoted the next step is to apply for finance.

4
Order

If the finance is accepted. It’s time to order your new car from Ideal Vehicle Leasing.

5
Delivery

Your car will be delivered free of charge anywhere in the mainland United Kingdom.

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