hi all
this may seem like a stupid question but what is the difference between contract hire and lease and can you recommend a good company for a 18/26 rigid box with sleeper not nec new but must be LEZ compliant
many thanks
thanks for that
no mention of lease on there does that mean they are the same ■■?
jc69817:
thanks for that
no mention of lease on there does that mean they are the same ■■?
I think basically the same. this may help but adjust the periods as it is primarily from a car site.
Business Contract Hire
Lease a business car for an agreed period of time (usually between 24 to 48 months). Pay an agreed fixed monthly instalment and the predicted depreciation of the vehicle plus interest.Personal Contract Hire
Lease a car for personal use for an agreed period of time (usually between 24 to 48 months). Pay an agreed fixed monthly instalment and the predicted depreciation of the vehicle plus interest.Finance Lease
A lease covering only the finance element of the vehicle. The customer pays back the entire capital cost of the vehicle plus charges over a period of time, or they may agree to a balloon payment to reduce the monthly instalments.Short Term Contract Hire
Use of a vehicle for a fixed short period of time (usually from 2 to 24 months) with a predetermined mileage at a fixed monthly cost without owning the vehicle and having the hassle involved in running and maintaining the vehicle.Personal Contract Purchase
Personal contract purchase (PCP) is similar to contract hire where an individual can lease a vehicle (subject to status) for a fixed monthly payment usually from 12-48 months with a low initial payment with a fixed mileage over an agreed period.Commercial Contract Hire
Lease a commercial vehicle for an agreed period of time (usually between 24 to 48 months). Pay an agreed fixed monthly instalment and the predicted depreciation of the vehicle plus interest.
There are also variations such as operating leases and lease contracts.
An operating lease does not include R&M but Contract Hire does, that’s the difference, you will be giving away money though on either option, especially if the lorry is out of the ordinary. i.e, anything other than a bog standard box/curtainsider in white.
It is good if you haven’t got any money as you pay 1-3 monthly payments up front & the VAT as you go along but if thats the case you’ll have even less as soon as you start running lorries 
The cheapest option is plain old fashioned finance, a 10% deposit & all the VAT up front & you’re away, anything less than 10% will need underwriting which will put the interest rate up, currently the major finance companies are offering 5.5% or thereabouts. if you do it at the end of a VAT quarter then you’ll get that back so it isn’t as bad as it looks.
I paid all my vat up front, first vat return i actually got a cheque from hmrc (fainted too) Is that a good or bad idea? Dunno. 
I used to get a cheque from them every quarter, used to do a lot of work for the Belgian container boys, only time I’ve ever benefited from GB Plc