Operating lease/ contract hire is an alternative source of funding and best described as paying for the usage of an item of machinery. There are other key points regarding Operating lease / Contract hire and these are described below.
- Payments are usually fully tax allowable
- Payment are for the usage only and are therefore lower when compared to a Hire Purchase contract over the same repayment profile
- Restrictions on hours
- Penalties for excess hours
- The user has no concerns over deprecation
- The item must be returned in a certain condition and by a specific date, if not a charge may be demanded (hours and returns condition will be stipulated at the commencement of hire)
- VAT is payable on the repayment
Customer service for AGCO Finance means having both the correct personnel and systems in place to ensure each customers receives the best advice in a fast and efficient manner. Therefore, whether you contact your local area manager or call our head office direct you will of course receive customer service of the highest order.
"Don’t purchase, just use it"