Contract Hire is a risk free and fixed cost method of business motoring.
Contract hire is predominantly a car operating lease. It is essentially a long term vehicle hire facility, clients would normally contract hire vehicles for a minimum term of 12 months.
The Lender undertakes some responsibility for the management and often the maintenance of the vehicle. Services can often include regular repair costs, replacement of tyres and batteries, roadside assistance, vehicle licences and recovery facilities.
The Hirer will pay a combined monthly rental to cover the full “running costs” of the vehicle. At the end of the hire contract, the vehicle is normally handed back to the Lender. Companies with large fleets and no dedicated fleet manager often contract hire cars and contract hire vans.
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