FB Contracts - Solutions for Contract Car Hire & Vehicle Leasing in Swindon & Wiltshire:
Contract hire in Swindon is fast becoming the most popular method of vehicle funding. We offer a fixed monthly payment that can incorporate maintenance, breakdown cover and relief vehicles in Swindon. Whatever your business requirements, our sales team can advise on the most suitable payment method and provide some of the most competitive deals available to the market. FB Contracts - providing solutions for van leasing and personal contract hire in Swindon and Wiltshire.
Contract Hire
This is a good choice if you want to remove assets from the balance sheet, eliminate financial loss when disposing of vehicles and enjoy the convenience of a full maintenance service. It also allows you to reclaim 100% of the VAT on servicing, and 50% of the VAT on the financial rental cost.
How does it work?
Once you've agreed on the contract term, annual mileage, maintenance options and monthly rental, we use our fleet purchasing power to aquire your chosen vehicle for you and deliver it to your specified location. At the end of the contract, provided the contracted mileage has not been exceeded and the vehicle is undamaged, we'll collect it and you will have no further involvement.
What else can be included?
Routine servicing, mechanical repairs, batteries, exhausts and tyres
Replacement vehicle in the event of an accident or breakdown
Full membership of a motoring emergency programme, including Home Start, Road Side Assistance, Relay, Relay Plus and European Cover
Individual or fleet insurance cover
Full range of competitive insurance products
The benefits
Costs paid from income not capital (no capital tied up in a depreciating asset)
Fixed monthly cost allows accurate budgeting/cash flow forecasts
Leasing company can reclaim all VAT on vehicle purchase price to give you much lower monthly payments
Minimal initial expenditure, typically three months in advance
Rentals allowable against taxable profits
For new cars and VAT qualifying cars, assuming some personal use, current legislation allows reclaim of 50% of VAT on your monthly rental against your VAT liability. The other 50% can be offset against taxable profits
For pool cars and commercial vehicles, current legislation allows reclaim of 100% VAT and 100% offset against taxable profits
Costs are off your balance sheet, improving gearing ratios and return on assets
Disadvantages
Contract Hire is a fixed contract which runs over a specific period. It can therefore carry a penalty if terminated early
