What is Contract Hire?
Contract Hire is a rental product where the monthly rentals 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. You typically 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. 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
- Lower fixed monthly rentals
Rentals are allowable against tax (restricted on the cars with CO emissions over 160g/km)2
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
Cash flow is improved
Administration is minimal
You are protected against any fall in used vehicle prices
You are not responsible for disposing of the vehicle
- Your vehicle can be changed for a new one every 2 or 3 years
The length of the agreement, initial payment and annual mileage can be adjusted to meet your requirements.