LEASING GUIDE

Contract Hire

The most popular form of financing providing fixed cost monthly rentals while avoiding the financial risk of owning vehicles. A contract hire agreement means no need to find the initial capital to purchase the car. There are many benefits to contract hire:

Finance Lease offers end contract flexibility, for those customers who might like to retain the vehicle. Finance Lease combines many of the benefits of Contract Hire and Lease Purchase. A finance lease is a VAT-efficient method of financing a vehicle that is usually accessed by VAT-registered companies.

Because it is a hire product, VAT is paid on the rentals which can help cash flow.

Once payments have been completed, the hirer can sell the vehicle to a 3rd party and retain 100% of the sales proceeds.

Benefits may include:

• Fixed monthly rentals for ease of budgeting

• Lump-sum or a fixed number of rentals as advance payment

• Option to extend agreement into a 'secondary' period for a nominal annual fee (peppercorn rental)

• Option to include a deferred sum/final 'balloon' payment to keep monthly costs low

• Same tax relief as Contract Hire

• 50% VAT usually reclaimable on cars

• 100% VAT usually reclaimable on LCVs

How it works:

1. Pay an initial deposit followed by a fixed number of monthly rental payments over an agreed contract period.

2. At the end of the term, you can choose a further 'secondary' lease of hire or dispose of the vehicle and keep 100% of the proceeds (paid as a rebate of rentals). Any balloon taken will need to be settled at the end of the primary period.

If you have any finance lease enquiries on our range of models, please contact West Way Leasing team on 01252 266 038.

Prices are not guaranteed and only a guideline price. We do not guarantee that we will be able to match or beat that price although we endeavour to be as accurate as possible.  Prices advertised are for information purposes only and do not constitute an offer. Further, unless you subsequently enter into a contract with a dealer, in using our service you are not committing to buying or leasing a car (at any price). Subject to availability.