For over three decades, Grosvenor has worked with clients to give cost-effective contract hire solutions – offering vehicles over a predetermined period and mileage at a fixed monthly rental, without depreciation risk or disposal issues.
The contract incorporates road fund licence and breakdown recovery whilst other ancillary products can be added – these include a full maintenance schedule, replacement vehicle, accident management and fuel cards.
- Accurate Cash Flow forecasting from fixed payments
- Reduced administration
- Zero risk on disposal
- Reduced risk of losses on sales proceeds and expensive maintenance bills
- No increase in company gearing
- Liability removed from balance sheet
- VAT on vehicle purchase redeemable – client benefits through cheaper rentals
- Reclaimable VAT on finance element of rental – 50% of VAT reclaimable if private use of the vehicle
- 100% VAT on services element can be recovered
- Lease rentals for cars with CO2 Emissions less than 161 are fully allowable against Corporation Tax
In Summary, Contract Hire allows you to pay a set monthly fee with no depreciation risk or disposal issues. A full maintenance contract will prevent any unexpected repair costs.