Frequently Asked Questions
- What is Contract Hire? – it is a
means for both businesses and private individuals to acquire the use of a
car or van for a fixed period of time – usually 2,3 or 4 years – at low
initial cost and subsequent low monthly rentals without the hassle of
disposal of the vehicle at the end of the contract period – maintenance
can be included, at extra cost, if required
- What does maintenance cover? –
usually all the servicing and repair costs – other than caused by
accidents – tyres, exhausts, batteries, etc… - basically everything other
than insurance and fuel
- How do I arrange a contract? –
contact Vision Vehicle Leasing for a quote for the car or van you require
– Vision will quote you a competitive rental – if you accept the quote,
Vision will arrange the ordering and delivery of the vehicle and the
paperwork that you will need to sign
- Can I terminate the contract? –
yes, but there will be a termination fee to pay before the vehicle is
collected
- What happens at the end of the
contract? – normally the vehicle is collected and providing the agreed
mileage allowance has not been exceeded and the vehicle is in a condition
commensurate with the mileage, then there is nothing further to pay
- Who insures the vehicle? – you
must arrange comprehensive insurance yourself
- Are there any Vat advantages? –
yes, as the funder of the car will reclaim all
the initial vat due on the price of the car from Customs and Excise – the funder will then calculate the monthly rentals on the
vat exclusive price. Vat is charged on the monthly rentals – if you are a
vat registered business you can reclaim half the vat due on the finance
element of the contract (all the vat if the vehicle is a van) and all the
vat on the maintenance element
- What about Corporation Tax? –
the rentals can be offset against Corporation tax – please check with your
accountant for the full position on this matter
- Is it to possible to contract
hire used cars or vans? – it is rarely possible to contract hire used vans
– it may be possible to contract hire used cars but as Vision obtain such
large discounts on nearly all new cars, it is normally possible to obtain
lower monthly rentals on new cars
- Are new cars or vans ever
available as ‘special offers’? – yes – please refer to the ‘Special Offers’
page on this website for current special deals
- What are the differences
between contract hire and other forms of financing of vehicles? – please
refer to the ‘Business Finance Options’ or ‘Personal Finance Options’
pages on this website – see top of this page for links - for easy to
follow explanations of the various
funding methods offered by Vision Vehicle Leasing
- How can I calculate my Benefit
in Kind tax liability on a potential new company vehicle? – please refer to
the Tax & CO2 page on this website – see top of this page for the link
