Arranging Contract Hire for a ŠKODA vehicle is simple – and can be cost-effective for many businesses. It is an alternative to Personal Contract Purchase (PCP) where companies are not seeking to eventually own the cars they lease.
The benefits for your business include:
Monthly payments on Contract Hire are fixed from the outset, enabling you to anticipate and manage outgoings. Servicing, tyres and maintenance for the vehicle can also optionally be included in this cost.
As the ŠKODA is never considered owned by or an asset of the business, you avoid any depreciation in the model's value. Company funds are not left tied up in the vehicle – a particular advantage for small businesses seeking to optimise their cashflow.
Companies which are VAT registered have the opportunity to reclaim part or all of the VAT on Contract Hire payments. There are also tax allowances on hire cars, reducing company outgoings further compared to full vehicle ownership. The cost of leasing a ŠKODA could be offset against your taxable profits.
At the end of the agreement, you return the vehicle with nothing further to pay. You do not have to make arrangements to sell or dispose of it yourself. After that, you have the freedom to choose another car on Contract Hire. Change vehicles on a regular basis to find the most suitable, or scale up flexibly as the business grows.
Discuss whether Contract Hire is right for you – speak with the Des Winks ŠKODA team today. You can call, visit or enquire online to reach our Scarborough dealership.