With Contract Hire, the vehicle is provided over a predetermined contract period and mileage in return for a fixed monthly rental and an initial, advance payment. 

This is normally equal to 3 months’ rental, but larger deposit can be made to reduce the cost of monthly payment, and mileage can be tailored to your requirements.

All Contract Hire agreements include the following for the duration of the contract:

• Road Fund License (VED)
• Roadside Assistance (48hr courtesy car available)

Optional services include:

• Full maintenance cover
• Tyre Cover
• Relief vehicle cover (for periods longer than 48hrs)

Outright Purchase:

Some fleets may prefer to wholly own their vehicles, providing them with more flexibility with vehicle usage. We can offer enhanced purchase discounts that can be applied to all car and van ranges.

Advantages of Purchase:

• No mileage restrictions
• Easy to release capital in the vehicle at any time
• No contractual obligations
• Own the vehicle outright, no third party involvement.

The Benefits of Contract Hire include:

• Accurate cash flow forecasting through fixed payments
• Agreements subject to annual mileage limit
• Off balance Sheet Funding
• Claim tax relief on the monthly rentals
• Depreciation can be charged as revenue expense against the profit and loss account.
• Interest paid can be charged as a revenue expense, spread over the term of contract
• No risk of depreciation on sale of vehicle
• Pooled mileage available
• Freedom of choice
• Tailored Budgets that meet/ exceed your requirements
• VAT Recoverable
• Improved personal cash flow
• Minimal Capital Expenditure
• Fixed Cost Maintenance
• Road Fund Licence Provided
• Reduced Administration
• On–Going Advice and Support
• Breakdown Rescue Cover
• Replacement Vehicle in case of Breakdown
• Enhanced Company Image
• MOT Monitoring and Prompting
• Preferential Rates on Vehicle Hire

Reconditioning and excess mileage charges may apply.

We adhere to the BVRLA Fair Wear and Tear Guide.

Points to Remember:
Leasing funds depreciation and removes any residual value risk

For further information on how Traction’s services can benefit you and (or) your business 
Call: 028 90 30 9000 or Email: info@tractionfinance.com