Contract Hire

A popular choice for Vat registered and limited companies that want minimum outlay and maximum control of costs, especially when the maintenance and relief vehicle options are included.

With this Vat beneficial financing package, one regular payment covers all risks including costs for depreciation and disposal for an agreed period of time and mileage. Road Fund Licence is included, but roadside assistance, maintenance and relief vehicle provision are options that can be added and charged to the rental payment.

Frequently Asked Questions

Who owns the Vehicle?	The Leasing Company
Who carries the residual value risk?	The Leasing Company
Who carries the ongoing maintenance risk?	The Supplier, assuming a maintenance contract is taken
Is the vehicle on or off the balance sheet?	This is off balance sheet
Typically, how much cash is required up front as a deposit?	Typically 6-7% of the purchase price (ie 3 months advance rental)
Who arranges delivery and collection of the vehicle?	Crystal Lease
Does the customer own the vehicle at the end of the contract?
Can the monthly payments be offset in full against corporation tax?	Yes - 100% of the monthly rentals can be offset against corporation tax. For vehicles costing over £12000.00 a proportion is disallowed. In addition, 100% of maintenance payments may be fully offset
Assuming some private or home/office use of the vehicle, is there any benefit following the changes in VAT Legislation?	Only 50% of the VAT can be reclaimed if the vehicle is used for any private mileage

Contract Purchase

For companies with high value cars who would like the option to purchase the vehicles, but don’t want any depreciation risks.

The customer acquires the vehicle by paying fixed monthly instalments with the asset being shown on the company balance sheet and can either retain ownership at the end of the contract or hand it back. Contract Purchase has the added benefits of savings on maintenance and relief vehicles and comes with full rescue breakdown cover and road fund licence.

Who owns the Vehicle?	The Supplier
Who carries the residual value risk?	The Supplier
Who carries the ongoing maintenance risk?	The Supplier, assuming a maintenance contract is taken
Is the vehicle on or off the balance sheet?	This is on balance sheet
Typically, how much cash is required up front as a deposit?	Typically 6-7% of the purchase price (ie 3 months advance rental)
Who arranges delivery and collection of the vehicle?	Crystal Lease
Does the customer own the vehicle at the end of the contract?	Yes if they pay the final lump sum at the end of the period or the vehicle can be returned.
Can the monthly payments be offset in full against corporation tax?	No, but Capital Allowances are available.
Assuming some private or home/office use of the vehicle, is there any benefit following the changes in VAT Legislation?	None