What is Contract Hire?

Contract Hire is a rental product where the monthly rentals for a vehicle are based on the period of hire, the annual mileage, the vehicle price and the anticipated future value of the vehicle. Service and maintenance cover can be introduced. On a contract hire agreement, you pay an initial payment of three or six monthly rentals and this is followed by equal monthly rentals over the 2 or 3 year period of the contract. At the end of the agreement, as long as you have fulfilled the mileage and condition requirements, you simply return the vehicle to us.

Key benefits of Contract Hire

• Contract Hire offers lower fixed monthly rentals.
• Rental fees for contract hire vehicles are allowable against tax (restricted on the cars costing more than £12,000).
• 50% of the VAT can be reclaimed on rentals on cars (the actual percentage may vary).
• There's an optional maintenance package to cover unexpected costs for contract hire vehicles.
• Cash flow is improved.
• Administration is minimal to setup an agreement for a contract hire vehicle.
• Contract Hire protects you against any fall in used vehicle prices.
• You're not responsible for disposing of the vehicle via a contract hire approach since the vehicle is simply returned.
• Your vehicle can be changed for a new one every 2 or 3 years.