What is Contract hire?

Contract Hire is basically the supply of a service rather than ownership of the vehicle.

Any associated risks such as vehicle depreciation, vehicle disposal and service and maintenance costs are the responsibility of the Contract Hire company.

Benefits of Contract Hire

Off balance sheet funding

As Contract Hire is classed as an ‘Operating Lease’ and is such the only form of vehicle funding that can be accounted for off the balance sheet.

With your contract hire vehicles not shown as assets on your balance sheet, key ratios such as return on capital employed will be improved.

Controlled budgeting

For a fixed monthly charge, all the associated costs of running and maintaining a company vehicle are covered.

These include service and maintenance costs, breakdown cover and replacement road fund licence.

The fixed monthly charge enables you to budget safe in the knowledge that there will be no hidden costs to consider.

Regular change cycle

Contract Hire is usually taken out over a period of 2 or 3 years. This fits in well with the majority of companies change cycles. At the end of the tern, you simply hand the vehicle back to the Contract Hire company and begin a new lease for the replacement vehicle.

There is no depreciation or disposal risk to you as a company.

Reduced Administration

Choosing to fund your vehicle fleet through contract hire will free up the many individual administration tasks that you would normally have to consider if purchasing your vehicles outright.

You will receive a monthly rental invoice from the contract hire company detailing your hire and maintenance charges.

As Contract Hire includes the provision of the road fund licence, this will automatically be sent to you before the current tax disc expires.

At the start of your contract, simply let us know where you would like your vehicle to be serviced and we will open an account at the garage of your choice.

Full Service Maintenance

and Tyres

There are two main types of Contract Hire, Maintained and non maintained.

A fully maintained contract will cover all aspects of service and maintenance of your vehicle, as well as the replacement of tyres as and when necessary.

A non maintained agreement will mean that you are responsible for all service and maintenance costs, as well as the replacement of tyres.

For full maintenance inclusions and exclusions please see Driver Information.