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Contract Hire

A simple and cost effective way to fund any number of vehicles.

Contract Hire is a long term rental agreement. Contracts range from 24 to 60 months and are tailored to the businesses requirements.


• A fixed cost making budgeting more simple
• A small initial cost
• No exposure to residual value risk
• VAT recovery on the lease rentals (subject to 50% block)
• VAT is payable on each lease rental (as opposed to upfront)
• Corporation tax relief available against the lease rental charges
• Eliminates most of the stresses and financial risks of vehicle ownership
• Reduced car fleet administration


• The company will be tied into a fixed contract
• No ability to profit from residual values
• There is no option for the company to purchase the vehicle
• It will be necessary to forecast the expected term and mileage for the car at the outset of the contract
• If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
• You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the ‘Fair Wear and Tear Guide’
• You must have fully comprehensive vehicle insurance (or third party and self-insure)


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