Contract Hiring your vehicle from Applied Leasing Ltd can provide you with a cost effective risk free way to finance and maintain your vehicles. We can tailor a package to suit your individual financial and operational needs, protecting you from the uncertainties of vehicle ownership.
As well as freeing up much needed capital, Contract Hire eliminates exposure to unpredictable residual values and offers VAT efficiency.
Under a Contract Purchase agreement you pay an Initial Payment and a Fixed Monthly Rental similar to contract hire but at the end of the contract you have the choice of paying a final payment or in accordance with your agreement, returning your vehicle with nothing further to pay.
During a Finance Lease agreement the full cost of the vehicle is spread across the whole term with the option to defer a final payment until the end of the lease (also known as a balloon rental)
Like contract hire the finance company recovers the VAT in full and claims the capital allowances, these benefits are passed onto you in the provision of lower monthly rentals.
At the end of the term you have an option to lease the vehicle for a further term generally at a much lower monthly rental. (also known as a Peppercorn Rental) alternatively you can return the vehicle and receive a percentage of the profit on sale. This would be refunded to you as a rebate on rental.
Personal Contract Hire is ideal for individuals who want to avoid the risk and hassle of purchasing, servicing and selling the vehicle.
You enjoy all the benefits of using the vehicle and the finance company retain all the risks of owning it.
Budgeting is easier as costs are fixed and known from the beginning, you can also include all maintenance costs and RAC recovery in the fixed monthly rentals, leaving only vehicle insurance and fuel to worry about.
Contracts are tailored to your needs and budget from the outset and can be extended or terminated at any time subject to contract.
There is a substantial reduction in financial risk for the individual, where residual values are concerned, as interest rates and maintenance costs are the responsibility of the finance company.
This is a conditional sale agreement which allows you the option to purchase the vehicle or to simply hand the vehicle back in accordance with your agreement at the end of the term of contract.
You can elect to include all maintenance costs and breakdown recovery in the fixed monthly rentals, leaving only the vehicle insurance and fuel to worry about.
The finance charges are not subject to VAT however if a maintenance package is included VAT is chargeable on the service costs.