CONTRACT HIRE Q & A's
Business - How much VAT can I reclaim off the Rental element?
Half of the VAT may be reclaimed off the rental element and a full 100% of the VAT is reclaimable off the Maintenance element. For vans VAT is fully reclaimable, Subject to normal rules. It is advised that you check with your own Accountant / financial advisor for advice.
Business & Personal - What other costs will I be responsible for within the contract?
For the duration of the Contract ordinarily your Road Tax will be included. If you have chosen a Non maintenance Contract you will be responsible for servicing the vehicle as per the manufacturers guidelines. The only other Costs during the Contract, will only involve Your insuring the vehicle fully comprehensively, and your fuel of course!
Business & Personal - What Costs are there at the end of the Contract?
There is no Final contract fee / charges on Contract hire. However, you must bear in mind that if you have gone over your mileage, then you will have to pay the mileage excess fee (Pence Per Mile). So always ensure that you have opted for adequate mileage, and check what the Excess "ppm" is. You must also be mindful that under the contract you are responsible for returning the vehicle in an acceptable condition. Should the vehicle be damaged through vandalism or negligence, then either have the cars repaired by an authorised dealer or be prepared for heavy bills! For Guidance on Contract Hire Returns, see our guide.
Business & Personal - What happens if the car develops a fault?
Nearly all of UK Cars today carry the standard Manufacturer warranty. If your car develops a fault simply take it along to your local franchised dealer, and under the terms of the warranty they will repair the car free of charge.( providing you or a third party are not at fault!)
Business & Personal - What happens if the vehicle is damaged before I return it?
The vehicle must be
returned with "fair wear and tear" If your car is
damaged, under the terms of the contract hire you
must have it repaired. If you send it back damaged
be prepared for heavy bills!
Business & Personal - Can I buy the vehicle at the end of the Hire?
Usually before the Hire expires, you can request a purchase price from the Hire Company. Contract Hire Companies differ in policy regarding the purchasing of cars. As a rule the car can only be sold to a third party due to taxation rules. Please check with the hire Company concerning their Policy.
Business & Personal - What If I get my Mileage wrong and I am doing more mileage than I thought?
The excess mileage penalties are manageable at low excesses. Should you anticipate doing a lot more mileage than initially thought, the contract hire Company will adjust your contract to allow for this. Simply get a revised quote and compare it to what the excess might be. You'll then know the most favourable route!
Business & Personal - What If I get a car that is no longer suitable for my requirements?
The downside of Contract Hire is that when you get a vehicle, your stuck with it for the term. To terminate a contract often results in severe Termination charges. It is critical that you make the right choice!
Business & Personal - What Do I do at the end of
the Hire period?
Towards the end of the Lease (Normally three Months) Trinity Vehicle Management will contact you with regards your leasing options. Also, the Contract Hire Company will write to you, and advise you that the Lease period will be coming to an end, and advise you to arrange another vehicle. You are free to test the market for offers again. Find your ideal vehicle and arrange it for the current car end date. The Contract Hire Company will contact you to arrange the uplift of the vehicle.
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The information given above is for guidance only. Some of the material may be out of date or may in certain areas contain errors or omissions. Trinity Vehicle Management has applied it's own interpretation of the Contract Hire formalities. Whilst our people are experienced in the field of funding, the information should not be relied upon solely when considering a purchase. We advise that you seek the assistance of an accountant/financial advisor, who can assess your particular finance needs and advise accordingly
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