Business Contract Hire

How could it work for your business?
If your company leases a vehicle on a contract hire basis, you will pay to rent the vehicle in monthly instalments for a contract of 24 or 48 months, for example. At the end of the contract, the vehicle is returned to the leasing provider.
Contract hire means your company can concentrate on its core activities, while avoiding the financial risk and administrative burden of owning your vehicle or fleet.
Business contract hire is available to financially eligible sole traders, partnerships and limited companies.

The key features of business contract hire

* Lending provider remains the owner of the vehicle, meaning the vehicle appears 'off the balance sheet' of your company

* Fixed monthly rentals cover the rental of the vehicle, plus any maintenance options if chosen

* The monthly rentals are calculated by taking the following into consideration:

* The cost of the vehicle

* The contract period

* Anticipated residual value of the vehicle (how much the vehicle is likely to be worth at the end of the contract)

* Mileage allowance (as chosen by you before the start of your contract)

* Any additional options, such as a maintenance contract

* Vehicle tax is provided for the full term of the contract



The key benefits of contract hire for business

* Low initial rental

* Fixed rentals for the whole package, making budget planning easier

* Flexible terms to meet your company's requirements, with variable contract duration and mileage terms

* Contract hire removes depreciating assets from your company's balance sheet, and the associated risks of ...