Benefits of Contract Hire vs Outright Purchase

Finance / Taxation Benefits/ Accurate monthly budgeting/ Off balance sheet/ Improved cash flow/ Minimum capital expenditure/ Protect your capital budgets/ Fixed interest rates/ Rentals allowable against taxable income, subject to the 'half the excess rule' partial disallowance/ VAT recoverable on monthly rentals*/ No depreciation risks as the responsibility for disposal of the vehicle rests with the leasing company./ 50% of the VAT relating to the finance element is recoverable if car has private usage. 100% if business only. On contracts with maintenance the service element/ VAT is recoverable.From April 2009, carbon emissions of company cars will impact the tax relief available for businesses.This will replace the current expensive car rule term and will move to a new 15% disallowance for contract-hired cars with CO2's 161 or above, whilst cars with CO2's 160 or below will enjoy no disallowance.Vehicle Running Benefits/ No vehicle disposal problems/ Reduced administration/ On-going advice and support from Bartletts SEAT/ Road Fund Licence provided (vehicle excise duty paid) for duration of contract/ Optional maintenance package/ SEAT Assistance (Breakdown cover)/ Optional GAP insurance*/ GAP insurance (loan/lease payoff coverage) 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.Tel: 01424 754 444

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