Contract Hire

Control your running costs

What is it?

You simply pay a hire rental to AGCO FINANCE, which allows you to use the equipment for the period specified in the contract hire agreement. Your supplying dealer may offer a separate contract to cover regular servicing and maintenance whilst you have it on hire.

What happens at the end of the hire period?

After the agreed term the equipment will normally be returned to the supplier and your commitment will end. At this stage you may want to discuss extending the hire period, buying the equipment or hiring something else. The choice is yours.

Is it more expensive?

The rentals will be lower than if you had bought using a Hire Purchase agreement or Finance Lease type agreement, because at the end of the contract period (usually 2 to 5 years) the value of the equipment is recovered by AGCO FINANCE. This value is built-in at the start to provide lower rentals.

What are the advantages?

Lower rentals and regular servicing allow you to predict more certainly the equipment running cost. All you pay for in addition to AGCO FINANCE hire charges and any dealer maintenance contract is fuel, other day-to-day running costs, insurance etc and labour.

What about VAT?

VAT is payable with each rental so there is no need to pay up front. AGCO FINANCE account for the VAT and issue appropriate VAT invoices to enable you to reclaim the VAT on individual rentals.

Will the payments change?

AGCO FINANCE's contract hire arrangements are all at a fixed rate of interest which means that the repayments will not normally change during the period of the agreement.

If I've got a question who can help me?

Firstly call your local AGCO FINANCE Area Manager who will be able to answer most questions on your agreements, give you an immediate quotation or even come and visit you to talk through any issues. If you can't get through to your local manager, then call our national helpline on +44 2476 851831 or email us at sales@agcofinance.biz and we will try and answer your question quickly and constructively.

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