Contract hire is a long-term vehicle rental agreement. You pay to ‘rent’ the vehicle for the period of your selected contract term, and then return the vehicle at the end of the agreement.
If you choose to lease a car on a contract hire basis, you will make a series of monthly payments for the duration of your lease agreement which varies between 24 months to 60 months. Finance is subject to status and conditions. You may choose a payment profile that is suited to your financial needs, either by making flat equal payment for the duration of the term or make an initial payment which is either 3, 6, 9 or 12 months advance payment. This would reduce your subsequent monthly payments.
For the duration of the agreement you have the option to choose the mileage allowance that suits your specific driving conditions. However, you need to be aware of the excess mileage charges that may be applicable over and above your annual mileage allowance.
You pay for the use of the vehicle throughout your contract, and then return the car to the finance company at the end of the agreement without any further obligations, leaving you free to lease or purchase another vehicle.
In some cases (subject to approval from the finance provider), you may be able to extend the vehicle contract.
This type of agreement is available to all financially eligible drivers looking to lease a vehicle for private / business use.
At the end of the contract, the vehicle is returned to the leasing provider, meaning you are free to hire or purchase another vehicle without any outstanding financial obligation. If you have exceeded your agreed mileage, an excess mileage charge will be payable, worked out on a ‘pence per mile’ basis as set at the start of your contract. When returning your vehicle, it will also be assessed according to the BVRLA Fair Wear and Tear guidelines. Any damage that falls outside of these guidelines may be subject to end-of-lease penalty charges. For more information on this, visit BVRLA website
If you’re not ready to take the plunge and want a bit more info, give us a call on 020 8012 8190 and we can help calculate how much you can save with an EV; whether that’s taking advantage of a company car lease with 0% BIK, or getting a great personal lease too. We can even calculate your fuel savings.
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