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Contract Hire is particularly popular with Vat Registered Companies as at least 50% of the Vat can be reclaimed on every payment and funding can be kept off the balance sheet.
Contract Hire enables you to release the capital you would have spent on the outright purchase of a vehicle into your business and allows you to opt for a low deposit and the option to have an all inclusive monthly rental.
Contract hire gives you the peace of mind that at the end of the agreement you simply hand back the vehicle and take out a new one.
Basically the user takes no risks in ownership and has set monthly costs, and effectively pays just for the use of the vehicle.
For an explanation of Contract Hire and Personal Contract Hire, click here.
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