Vehicle Contract Hire
Your guide to contract hire and car leasing
Contract Hire gives your business the benefit of fixed-cost motoring, reducing unexpected vehicle expenses, time and paperwork. You don't need to worry about depreciation or disposing of the vehicle later, you simply pay a fixed monthly rental which can include a full maintenance and service package.
Your contract hire period and your maximum annual mileage is agreed at the start of the period, and the monthly price you pay will depend upon the cost of the vehicle, its likely value at the end of the contract hire period, your mileage and whether or not you choose to include servicing and maintenance. Unlike a conventional loan agreement, with contract hire you are funding the difference between the cost of the vehicle when new and its market value at the end of the agreement, and because some cars and vans depreciate less than others, it's not necessarily the case that a car costing twice as much as a lesser model to buy will cost twice as much to contract hire. This means a greater choice for your budget.
Additionally, firms like First Vehicle Leasing are often able to obtain vehicles at much less than the retail value, and these cost savings can be passed. Have a look at our contract hire special offers for confirmation of this.
In fact, contract hire allows you to drive a much more expensive car than would be possible for the same monthly budget on a traditional finance package. At the end of the term, you can hand back the vehicle and enjoy another one brand new. Or, if you prefer, you can also buy your car from the finance company (usually at a good discount on market value), or you can extend the contract hire period.
