Why Lease?

Leasing/Contract Hire is the fastest growing method of driving a new vehicle in the UK.

Have you ever rented a self-drive car for a day or a week? Well, Leasing or Contract Hire is exactly the same, just for a longer period. Easy, isn't it? It's available for businesses or for private individuals. Read on to understand how it works.

With SVCONTRACT’s deals, you get a brand new car with zero miles on the clock, delivered to your door. The new car is fully taxed and has the full manufacturer's warranty and AA cover. You then run this new car for 12, 18, 24 or 36 months, and run it within an agreed mileage limit (usually 10,000, 15,000 or 20,000 miles per year). If you exceed the mileage limit, you pay for extra miles at (typically) 4p - 10p per extra mile. This is known as the excess mileage rate.

Business Contract Hire is an off balance sheet method of funding a car, involves very little cash with the small deposit and our small monthly payments, and fixes your costs over the period. You pay monthly by direct debit, so there's no risk and little outlay. If you are a business, you should talk to an accountant! VAT on rentals can be reclaimed 100% if car only used for business. 50% if business and private use. Don't miss out on VAT saving!

Personal Contract Hire is exactly the same as contract hire for businesses. However, VAT makes a difference. Businesses get the rentals ex-VAT (they can often reclaim it), whereas private purchasers have it included in the rentals. But it's not very significant, and personal Leasing/ Contract Hire is a fantastic way to lock down your motoring costs for a private motorist, with no real risk at the end of the contract.

At the end of the contract, the car is collected from you and you have no further obligations. You do not buy the car, nor do you have a "balloon" payment. Simply give it back! Of course, the car should be fair and reasonable condition commensurate with its age and mileage. If it's not, you'll be charged for any damage. But to me that's common sense... And then simply go for a new one.