Business Finance Options.
Finance Options
Hedin Automotive London Ltd offer a selection of Mercedes-Benz business leasing and hiring options including Contract Hire and Hire purchase.
Our range of finance and leasing options makes it simpler for you to add a Mercedes-Benz to your business' success story.
Contract Hire for business Frequently Asked Questions
What is Business Contract Hire?
Business Contract Hire is a popular financing option for businesses that allows them to lease Mercedes-Benz vehicles for a fixed period at a fixed monthly rental cost. Unlike ownership, the business does not take ownership of the vehicle, but rather pays for its use during the lease term. At the end of the agreement, the vehicle is returned, subject to mileage and condition terms.
What are the key advantages of Business Contract Hire for businesses?
Business Contract Hire offers several benefits for businesses, including predictable monthly payments, minimal initial outlay, and the ability to budget effectively without the financial commitment of ownership. Additionally, businesses can potentially benefit from VAT reclamation on the monthly rentals if the vehicle is used solely for business purposes.
Are there mileage restrictions with Business Contract Hire?
Yes, Business Contract Hire agreements typically come with mileage restrictions. Exceeding the agreed-upon mileage limit may incur excess mileage charges at the end of the lease term. It's essential for businesses to estimate their annual mileage accurately to avoid unexpected costs and penalties.
Can additional services be included in a Business Contract Hire agreement?
Yes, businesses can often opt to include additional services such as maintenance, servicing, and breakdown cover in their Business Contract Hire agreement for added convenience and peace of mind. These services can be bundled into the fixed monthly rental cost, providing businesses with a comprehensive vehicle management solution.
Hire Purchase for business Frequently Asked Questions
What is Business Hire Purchase?
Business Hire Purchase is a financing option that allows businesses to acquire a Mercedes-Benz vehicle while spreading the cost over a fixed period. With this option, the business hires the vehicle with an agreed-upon deposit and then pays fixed monthly installments. Once all payments, including any interest, are made, ownership of the vehicle transfers to the business.
What are the benefits of Business Hire Purchase for businesses?
Business Hire Purchase offers several benefits for businesses, including predictable monthly payments, the ability to budget effectively, and the opportunity to own the vehicle outright at the end of the agreement. Additionally, the interest rates are typically fixed, providing stability and peace of mind throughout the term.
Is a deposit required for Business Hire Purchase?
Yes, typically a deposit is required for Business Hire Purchase agreements. The amount of the deposit may vary depending on factors such as the value of the vehicle and the specific terms of the agreement. It's advisable to discuss deposit options with the finance provider to find a solution that aligns with your business's financial situation.
Can VAT be reclaimed on Business Hire Purchase agreements?
Yes, in most cases, businesses can reclaim the VAT on the purchase price of the vehicle if it's solely used for business purposes. However, it's essential to consult with your tax advisor or accountant to ensure compliance with VAT regulations and to understand any specific conditions that may apply.
Found a finance path to suit your needs? View our range of New Mercedes-Benz or selected Approved Used Mercedes-Benz Cars available to order today with your preferred finance option.