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Contract hire

This is a popular way to finance your vehicle without buying your Volkswagen outright. Contract hire agreements provide you with fixed monthly rentals, over a term between 12 to 60 months. Then you simply hand it back at the end of the contract*. Servicing, maintenance and tyres can be included in your monthly rental so you can accurately budget your running costs.

This payment plan, effectively allows you to ‘hire’ vehicles as opposed to owning them. This way, the concern of issues such as residual values or selling the vehicle when the finance term is up is alleviated.

A Contract Hire agreement from VWFS is for business users only and can run for a period between 1 to 4 years.

Contract hire is classified as an operating lease for current taxation purposes; therefore it is regarded differently to 'purchase' contracts so you may benefit from certain tax advantages. Also, if you are a VAT registered business a proportion of the rentals may be tax deductible. Your financial or tax advisor should be able to advise you if this applies.

 

*Subject to terms and conditions