Contract Hire
- No depreciation risk
- Predictable monthly payments
- Straightforward end of contract obligations
What is Business Contract Hire?
Business Contract Hire is a leasing solution where a business rents a vehicle for a fixed period, usually ranging from 24 to 60 months. This option provides a simple way to manage a fleet without the responsibilities of ownership. It involves fixed monthly payments, allowing for easy budgeting and financial planning.
Key Benefits
- Fixed Monthly Payments: Budget with confidence with predictable monthly expenses.
- No Depreciation Concerns: Eliminate the risk of vehicle depreciation, a common issue with owned assets.
- Maintenance Inclusion: Option to include maintenance and servicing in the contract for peace of mind.
How Does It Work?
- Select Your Vehicle: Choose from a wide range of vans that best suit your business needs.
- Customize Your Contract: Decide on the contract length, estimated mileage, and whether to include maintenance services.
- Monthly Payments: Make fixed monthly payments throughout the duration of the lease.
- Return the Vehicle: At the end of the lease, simply return the vehicle, avoiding the hassle of resale or disposal.
Is Business Contract Hire Right for Your Business?
Business Contract Hire is ideal for companies that prefer not to engage in the complexities of vehicle ownership and value the ease of fixed monthly costs. It’s particularly suitable for businesses that want to regularly update their fleet without dealing with depreciation or resale issues.
Alternative Finance Solutions
Related Content
Featured Vehicle
Ford Transit Custom 2.0 EcoBlue 150ps H1 Multicab Limited
£379
- Fuel: Diesel
- Seats: 5
- Vehicle Size: L1H1
- Payload: 1158kg
How we can help
We’re committed to providing straightforward and effective vehicle financing solutions. Our experienced consultants help you navigate through our flexible Finance Lease and Business Contract Hire options, ensuring you find the perfect fit for your business’s needs and budget.
Contract Hire FAQs
The monthly rental typically covers the lease of the vehicle itself. It can also include other services like road tax and breakdown cover, depending on the lease agreement. Maintenance packages may be available at an additional cost.
Yes, you can end a Contract Hire agreement early, but this usually incurs an early termination fee. This fee can be a significant amount, so it’s important to be sure of your commitment before entering the agreement.
Yes, Contract Hire agreements usually have a pre-agreed annual mileage limit. Exceeding this limit can result in excess mileage charges, so it’s important to estimate your mileage accurately when setting up the contract.
If the van is damaged or involved in an accident, you’re responsible for getting it repaired using an insurer-approved service to maintain the vehicle’s condition as per the ‘fair wear and tear’ standards.
Typically, you cannot buy the van at the end of a Contract Hire agreement. The primary purpose of BCH is for the business to rent the vehicle for the term and then return it to the leasing company.