Operating Lease and Contract Hire

Operating Lease
and Contract Hire

Operating Lease

Think of this as your minimum commitment, low payments option. In an operating lease, you only pay for the use of the machine. That lowers your monthly payments. At the beginning, you pay an upfront rental fee, and your rental payments include VAT. At the end of the agreement you simply give the machine back to John Deere, subject to return conditions. Though you cannot claim capital allowances, you can offset the rental payments against taxable profits as a business expense.

Contract Hire

The straightforward all-inclusive rental option with minimal commitment, lower monthly payments and a worry-free maintenance package. It combines all the advantages of an operating lease with comprehensive maintenance packages in one fixed price agreement. After an upfront rental fee, you enjoy lower fixed monthly payments, and return the machine at the end of the term of the agreement. You can offset the rental fees against taxable profits, since they are a business expense.

Total cost control

Pay only for what you use, with low payments and no ownership commitment. The contract hire option also includes maintenance packages for ultimate peace of mind.

Operating Lease and Contract Hire

Key Benefits of Operating Lease and Contract Hire

  • Easy on your budget – low rental payments
  • Attractive pricing – lower upfront costs
  • Predictable – fixed term, fixed interest
  • Tax benefits – offset rental fees as a business expense
  • Accurate budgeting – contract hire includes maintenance for predictable running costs