What is it?

Under a Contract Hire agreement, vehicles continue to be owned by Hitachi Capital and are hired to you for a set period of time and at a fixed monthly rate.

It's the solution for companies who want to concentrate on important business activities and avoid the financial risk and administrative burden of owning their vehicle fleet.

Key Features and benefits:

• Fixed rentals for the whole package making budget planning easier 
• Flexible terms to meet your requirements, variable duration and mileage terms
• Maintenance of vehicles can be included in monthly rentals, spreading the cost
• Removes depreciating assets from the balance sheet
• Removes the risks of owning the vehicles such as disposal responsibility
• VAT 100% reclaimable
• 100% of rentals can be offset against taxable profits
• Road Tax included for the length of the contract
• Optional maintenance can be included 

How Does It Work?

The monthly rental charged is calculated based upon the cost of the vehicle, the contract period and mileage and the anticipated resale value. It is also takes into consideration the service and maintenance costs, together with any additional services such as relief vehicles.

Under a Contract Hire agreement, because Hitachi Capital retains ownership of the vehicle, we absorb the cost of any risk such as unforeseen running costs and uncertain resale values.

How Is It Accounted For?

Rentals paid are fully deductible against corporation tax.

Vehicles under Contract Hire are not recorded as assets on the balance sheet, thus improving company gearing ratios.

Our Approach

The cornerstone of our approach is total transparency. All costs are visible right from the start. We manage the purchase, maintenance, repair and disposal of each vehicle.

All costs are clearly displayed at the outset of the contract and if there are any losses to absorb then we take full responsibility for them, meaning you never have to worry about hidden charges or unexpected bills.

We use all of our experience and expertise to design, develop and deliver effective vehicle solutions.