The Contract Hire option is increasingly popular for business customers since it potentially eliminates any disposal and depreciation costs. The Audi is rented and not bought, so the business enjoys full use of the vehicle without and drawbacks of ownership.

Any disposal risk at the end of the agreement is avoided, because the car is handed back (so long as all the terms and conditions have been met). Because of this, we can recover VAT on the cost of the vehicle at the outset, which means that the rental payments are lower.

Up to 50% of VAT payable on the monthly rentals may also be recoverable by business customers who are VAT registered, if drivers have some private use of the car. The agreement can be adapted to suit the needs of your particular business. This could help with flexible off-balance sheet financing and more accurate budgeting.*

Even the Annual Road Fund Licence, at current prices, is covered by the agreement. We can also build into the monthly rental payments a range of fixed cost options on which VAT can usually be recovered in full.

*We recommend that you seek independent tax advice.