Why choose Contract Hire?

Contract Hire is quickly becoming the #1 choice for motorists throughout the UK. There are many reasons why Contract Hire is so popular:

• It offers off balance sheet funding.
• It is a VAT efficient way of operating a company car.
• It provides fixed motoring costs for the contract period.
• It removes the uncertainty surrounding future, ever fluctuating residual values.
• It allows to you takes advantage of the purchasing power of car leasing companies.
• It frees up your staff time, by reducing in-house administration.
• It offers detailed reporting is required.
• It is available with an optional monthly maintenance charge (which covers routine maintenance and servicing costs).

Low monthly rentals
There’s no large initial outlay and monthly payments are fixed, so it’s good for cash flow and makes budgeting a cinch.You pay a fixed monthly rental and at the end of the contract hand the car back to the leasing company with nothing to pay (provided that the car meets the mileage and condition criteria agreed at the start of the contract).

Hassle-free motoring
So you don’t have the hassle of selling the car when you replace it. It also means you don’t have to worry about the risk of falling used car values (known as residual values). If the second-hand car market drops suddenly, that’s the leasing company’s problem, not yours.

Good for business
Most of the fleet management can be handled by the fleet provider, which frees up company resources and the funding isn’t shown on the balance sheet, which reduces a company’s debt liability and helps to improve your corporate credit rating.

End of contract
At the end of a contract hire agreement - after the vehicle is returned - car leasing companies will charge for any excess mileage (over and above the total contracted mileage) and any damage (or unfair wear and tear) on the vehicle. These charges can vary from reasonable to very steep - depending on the leasing company - so it is advisable to check the small print on your contract before you sign. Also, if you end (early terminate) a contract hire agreement early, the penalties can sometimes also be quite high - typically 50 percent of the remaining rentals. So if you're unsure about the length of time that you want to keep the car, it may be more prudent to pay slightly more per month for a shorter contract length.