Contract Hire Explained

Contract Hire is a flexible arrangement that's popular with many businesses due to the variety of benefits and offers. At the end of the agreement you must return the vehicle.

How does it work?

• We will agree with you an estimated mileage and the amount of deposit or number of advance rentals and this is combined with the agreement duration will determine the amount of your monthly payment
• Duration between 12 - 48 months
• Available on new cars and light commercial vehicles
• You sign an agreement, pay the deposit and make the monthly direct debit payments
• Interest is included within your rental and fixed for the term of the agreement, which means you'll know exactly how much you will repay each month
• Towards the end of your agreement we'll write to remind you that the contract is nearing the end
• You can book a suitable appointment to return your vehicle via the Free2Move Lease website
• We will remind you of the return conditions expected on the vehicle (excess mileage and damage may apply)

Features and Benefits

1. A guaranteed fixed monthly payment, allowing you to budget with confidence
2. No depreciation risks as you do not own the vehicle
3. No vehicle disposal concern

If VAT registered ​you may be able to recover:

• Rental payments may be offset against taxable profits
• If your business is VAT registered you can reclaim 100% of the VAT on the rental if the vehicle is used exclusively for business (includes all vans) or 50% of VAT on the finance element of the rentals if the vehicle is also used privately.

Optional Products & Services

If you want to know more about how contract hire can benefit you and or your business, why not get in touch with our Local Business Sales Consultant at W R Davies Citroën who can explain all the funding options available.

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