This option offers a trouble-free way to run business vehicles. The principal benefit is that Porsche Financial Services can reclaim the VAT on the purchase price of the vehicle and this benefit can be passed on to you in lower monthly rentals. The monthly rentals are subject to VAT but up to 50%* of this may be reclaimed. Porsche Contract Hire looks after all of the administration, right down to disposing of the car when the contract finishes.

A maintenance option is also available and covers routine maintenance, emergency service, road fund licence renewal and provision of a relief vehicle in the unlikely event of a mechanical breakdown. Where maintenance is chosen, up to 100% of the VAT may be recoverable on the maintenance payments. Fixed monthly costs allow you to budget cashflow more accurately. Contract Hire is currently only available for Business Users.

• Lower monthly rentals as the finance company reclaims the VAT on the car purchase, which will benefit your cashflow.
• Monthly rentals are fixed, making budgeting easier (plus VAT + tax at applicable rate).
• You have no responsibility for the disposal of the car.
• A proportion of the rentals may be allowable against tax, reducing your tax liability. The percentage of rentals that can be claimed is dependent on the cash price of the car.
• You can have the option of a maintenance package for your car, thus avoiding any unexpected bills.
• Up to 100% of the VAT may be reclaimable on the optional car maintenance payment, which may be allowed against tax.
• You may be able to reclaim up to 50%* of the VAT on the monthly finance rentals.
• You are not exposed to any depreciation risk on your car.
• Contract Hire is normally an off-balance sheet facility.
• Your initial capital outlay is reduced allowing your funds to be retained in the business.

* 100% of the VAT on rentals may be reclaimed on cars used exclusively for business. If any private use of a car occurs (e.g. taking it home at night) up to 50% of the VAT may be reclaimable. It should also be noted that this could be lower depending on the individual VAT recovery position of the business.

Leasing is an option traditionally used by VAT registered businesses as the monthly rentals are subject to VAT. With a Finance Lease (unlike Contract Hire) the lessee shares in the profit or loss on the sale at the end of the agreement. Finance Leasing has the same tax position as Contract Hire. There are two types of Finance Lease: Fixed Period and Full Payout. Fixed Period Finance Leasing enables monthly rentals to be reduced over a fixed period by agreeing a large final payment, which is a percentage of the anticipated value of the vehicle. This final payment will be paid at the end of the agreement, normally out of the proceeds of selling the vehicle. With a Full Payout Finance Lease there is no final payment, however, you have two options at the end of the agreement. Firstly, you can sell the car as our agent to a third party and up to 95% of the VAT exclusive sale proceeds are rebated to you. Alternatively, you may continue to use the car and enter into a secondary rental period. The secondary rental is calculated as 1% of the original car cash price plus VAT per annum.

• Lower monthly rentals as the finance company reclaims VAT on the car purchase - benefiting your cashflow.
• A proportion of the rentals may be allowable against tax, reducing your tax liability. The percentage of rental that can be claimed is dependent on the cash price of the car.
• Your initial capital outlay is reduced allowing your funds to be retained in the business.
• Monthly rentals are fixed, so budgeting is easy (plus VAT and tax at applicable rate).

For further information please contact your Porsche Centre.