Contract Hire
WHAT IS PERSONAL CONTRACT HIRE?
Personal Contract Hire is a fixed cost rental agreement.
You first choose your new Suzuki car, pay an initial rental in advance, followed by fixed monthly rentals to suit your budget. You can even choose an optional maintenance package as part of your agreement which can help take away the hassle of keeping your vehicle in good condition.
It’s different from Personal Contract Purchase (PCP) because there is no option to purchase the car at the end of the agreement and the vehicle must be returned.
HOW PERSONAL CONTRACT HIRE WORKS
Personal Contract Hire works by choosing from an initial rental payment in advance of 1-12 months, you then set the contract term between 2-5 years.
You then decide your annual mileage limit – the minimum is 5,000 and the maximum varies by vehicle. If your circumstances change during your agreement you may be able to amend your contracted mileage. You can also then decide whether to add an optional maintenance package at an additional cost.
At the end of the contract you must return the car and you’ll have nothing more to pay if the vehicle condition is in line with BVRLA guidelines and hasn’t exceeded the maximum agreed annual mileage.
If the vehicle doesn’t meet the mileage and condition terms, then excess charges will apply.
WHAT IS BUSINESS CONTRACT HIRE?
Business contract hire is a long-term lease agreement which allows a business to pay a fixed monthly rental cost for the use of a vehicle. The leasing provider will be the owner of the car while you have it, and at the end of the agreement you’ll give the car back* - meaning you won’t need to worry about depreciation or disposing of it.
Business contract hire is one of the most popular ways for VAT registered companies to drive a Suzuki, as you could claim back up to 50% of the VAT** on the cost of renting, which means you’ll save money overall. It works in a similar way to personal contract hire, but it’s exclusively for companies, and has the added VAT benefits.
*No ownership option. Return conditions and excess mileage charges apply
** Subject to VAT status and usage of the vehicle. Consult your tax advisor if unsure how this applies to your business.
WHAT ARE THE BENEFITS OF
BUSINESS CONTRACT HIRE?
One of the main benefits of business contract hire is that VAT registered companies could claim back up to 50% of the VAT, making it an affordable, cost-effective way of driving a company car.
We know that budget planning has an important part to play in any business, and the fixed monthly rentals help to make this easier. We even offer an extra option to include maintenance costs at the start of the contract - this means you’ll be able to spread the cost of maintaining your company cars across the year and if you do run into any problems you can be sure that you’ll be back on the road as quickly as possible.
Also, the fact that you give the car back to us at the end of the agreement means that you can go straight into another car leasing contract subject to status and a new credit application to get the latest Suzuki, so your fleet will be up to date with the most recent model.
Suzuki contract hire agreements are flexible, so you can choose a plan which suits you and your business - with options on different agreement lengths as well as flexible upfront costs and mileage limits.