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16th Feb 2019 - By providing honest and independent vehicle and finance solutions; KeyFleet makes our clients lives easier by understanding their needs and developing long term relationships whilst saving them time and money.

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Business Contract Hire

A simple and cost effective way to fund any number of vehicles

Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts range from 12 to 60 months and are tailored to the businesses requirements.

Advantages:

  • Minimum capital expenditure
  • Accurate monthly budgeting
  • Improved cash flow
  • Fixed interest rates
  • Rentals can be offset against the businesses profits. Cars with a CO2 output above 130g/km are currently subject to a 15% disallowance on the amount of the rental that can be claimed against the businesses taxation, for contract-hired cars with a CO2 output of 130g/km or below, there is currently no disallowance.
  • Reduced administration
  • On-going advice and support
  • Road Fund Licence provided (vehicle excise duty paid) for duration of contract
  • Optional maintenance package
  • Optional breakdown rescue cover
  • Optional replacement vehicle cover in event of breakdown
  • Optional GAP insurance which provides cover for the shortfall between the outstanding finance and the insurance value if the vehicle is declared a write-off by your insurance company

Disadvantages:

  • Early termination can be expensive
  • If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
  • You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the 'Fair Wear and Tear Guide'
  • You must have fully comprehensive vehicle insurance
  • You will never own the vehicle as there is no option to buy it

More Information on Business Contract Hire:

The Contract Hire Company reclaims the VAT on the original purchase, which reduces your monthly rentals (which are + VAT). Contract Hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use, no exempt turnover and not being on the Flat Rate VAT Scheme).

On contracts with maintenance the VAT on the service element is 100% recoverable. One of the major benefits is that there are no disposal worries as the future value is underwritten by the leasing company. Another benefit of Contract Hire is that it is generally 'off balance sheet funding' (subject to legislation change) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.

Check out our current special offers below...

Business contract hire BMW 1 Series, Hatchback
BMW 1 Series 118 Hatch
1.5 i 136 M Sport Shadow Edition 5Dr Manual [Start Stop]
£232.63 + VAT monthly rental
£1395.78 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 8000
1.5 litre Petrol Manual
+ compare
Business contract hire Kia Sportage, SUV / 4x4
Kia Sportage SUV 2wd
1.6 GDI 130 2 5Dr Manual [Start Stop]
£189.99 + VAT monthly rental
£1709.91 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 9 + 35
Annual mileage: 8000
1.6 litre Petrol Manual
+ compare
Business contract hire Audi A5, Coupe
Audi A5 40 Coupe
2.0 TFSI 190 S line 2Dr S Tronic [Start Stop]
£256.03 + VAT monthly rental
£1536.18 + VAT initial rental
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
2 litre Petrol Automatic
+ compare
Business contract hire Land Rover Range Rover Evoque, SUV / 4x4
Land Rover Range Rover Evoque SUV FWD
2.0 eD4 150 SE Tech 5Dr Manual [Start Stop]
£289.90 + VAT monthly rental
£2609.10 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 9 + 35
Annual mileage: 10000
2 litre Diesel Manual
+ compare
Business contract hire Volvo S90, Saloon
Volvo S90 Saloon
2.0 T4 190 Momentum 4Dr Auto [Start Stop]
£234.27 + VAT monthly rental
£1405.62 + VAT initial rental
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 8000
2 litre Petrol Automatic
+ compare
Business contract hire Renault Clio, Hatchback
Renault Clio Hatch
0.9 TCe 75 Play 5Dr Manual [Start Stop]
£144.00 + VAT monthly rental
£864.00 + VAT initial rental
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
0.9 litre Petrol Manual
+ compare
Business contract hire Vauxhall Corsa, Hatchback
Vauxhall Corsa Hatch
1.4 i 90 SRi Nav 5Dr Manual
£149.38 + VAT monthly rental
£896.28 + VAT initial rental
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 8000
1.4 litre Petrol Manual
+ compare
Business contract hire Ford Focus, Hatchback
Ford Focus Hatch
1.0 T EcoBoost 125 ST-Line 5Dr Manual [Start Stop]
£199.39 + VAT monthly rental
£1196.34 + VAT initial rental
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
1 litre Petrol Manual
+ compare
Business contract hire Skoda Octavia, Estate
Skoda Octavia Estate
2.0 TSi 245 vRS 245 5Dr DSG [Start Stop]
£230.82 + VAT monthly rental
£1384.92 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
2 litre Petrol Automatic
+ compare
Business contract hire Volkswagen Touareg, SUV / 4x4
Volkswagen Touareg SUV
3.0 V6 TDI 286 R-Line 5Dr Tiptronic [Start Stop]
£407.83 + VAT monthly rental
£2446.98 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 10000
3 litre Diesel Automatic
+ compare
Business contract hire Volkswagen Golf, Hatchback
Volkswagen Golf Hatch
1.6 TDI 115 Match 5Dr Manual [Start Stop]
£198.14 + VAT monthly rental
£1188.84 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 24 months
Rental profile: 6 + 23
Annual mileage: 8000
1.6 litre Diesel Manual
+ compare
Business contract hire Volkswagen Arteon, Hatchback
Volkswagen Arteon Fastback
1.5 TSI EVO 150 R-Line 5Dr DSG [Start Stop]
£265.73 + VAT monthly rental
£1594.38 + VAT initial rental
This vehicle is in stock
Business contract hire
Contract term: 36 months
Rental profile: 6 + 35
Annual mileage: 8000
1.5 litre Petrol Automatic
+ compare

Have you seen our latest blog post?

Big savings for fleet leasing with KeyFleet’s “Marketplace service

KeyFleet provides the most competitive contract hire and leasing quotes for UK businesses As... read more

Posted on 22nd February 2018 at 11:38 AM

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