What is Contract Hire?
If you make use of our Contract Hire finance plan, a vehicle is made available to you on a long-term basis through fixed monthly rental payments.
The contract begins with the term of hire decided by the customer, and the monthly cost is calculated based on an approximation of the customer's annual mileage. For the duration of the Contract Hire process, the vehicle remains the property of the original leasing company. The end result of this is that the customer avoids the operational and financial risks that would accrue to them should they be the sole owner of the vehicle in question.
Overall, the primary benefit of Contract Hire is the extent to which personal ownership duties are transferred from the motorist to the vehicle hire company. The hire company is able to take care of any administrative details as well as maintenance organisation, and also has the ability to cope with any special requests or requirements with the greatest amount of speed.
Contract Hire is of benefit to business customers who wish to finance company vehicles in the most cost-effective manner. Private individuals, on the other hand, have access to Personal Contract Hire.
Personal Contract Hire is functionally identical to Contract Hire, but is only available to private customers. The vehicle is leased to the individual for a contractual 'lease period', during which monthly payments will be made. At the end of the Personal Contract Hire period, the vehicle is given back to the originating company, and any concerns about resale value are lifted from the customer's shoulders.
One of the advantages of Personal Contract Hire is that the monthly payments are made in fixed installments regardless of interest charges, making budgeting simple and stress-free. Road Fund Licence is included as part of the rental, as can ongoing maintenance packages.
If you would like to talk to us about your finance options and discover your own personal quotation, leave your details with us using the enquiry form below. Following your submission, our Online Business Manager will contact you in order to fulfill your request.