contract hire with lantern vehicle finance
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Contract hire is an ideal product for companies who don’t want the financial risk of running their own cars and vans and who are looking to reduce the administration burden of buying, servicing and disposing of their vehicles
Lantern Vehicle Finance Ltd are market leaders in not only find the most competitive rates for Contract Hire, but are also on hand to advise and match the correct contract plans to meet with all your needs.
Your company simply hires the vehicles via Lantern Vehicle Finance, for a pre-determined period at a fixed monthly rate. The chosen Contract Hire company retains ownership of the vehicles – and the risk associated with them – and at the end of the contract they are returned to the hire company.
The key benefits of contract hire to the business user are:
off balance sheet funding
Under contract hire your vehicles do not appear on your company’s balance sheet as they are owned by the hire company. The removal of capital assets from your balance sheet can enhance a company’s gearing (borrowing) ratio.
fixed monthly cost
A fixed monthly payment is charged over the life of the contract and the initial up front payment is normally just three month’s rental. Fixed monthly cost makes budgeting much easier in turn more accurate and improves your company’s cash flow.
vat benefits
Contract hire has many VAT benefits in that the hire company can claim back the VAT on the purchase price of the new vehicle. That means they can pass on these benefits to our customers. Once the vehicle is on the road, you can then claim back 100% on the service element and 50% of the financial element of the rental cost. For commercial vehicles you can reclaim 100% of all parts of the rental.
reducing your financial risks
Managing the risks involved in running a vehicle fleet is all important and that’s exactly what you can do when opting for contract hire. The hire company takes all the risks involved in everything from residual values and maintenance to interest rates. That you to pay the monthly contract hire cost, insure and fuel the vehicle.
reducing administrative hassle
As the contract hire company along with Lantern Vehicle Finance are supplying the vehicle, servicing and disposing of your vehicles and administration for the fleet operator is kept to the bare minimum.
summary
Off balance sheet funding
Maximum cash flow benefits
No depreciation risks
Low initial outlay
Fixed monthly cost
Service and maintenance plans can be included
Replacement vehicles at extra cost
Personal Contract Plans are also available
