Contract Hire

What is Contract Hire and how does it work ?

This form of leasing has been around since time immortal. Many companies use this form of leasing to take full tax benefits from their fleet vehicles.

They also use it to budget for the whole life costs of the leased vehicles and include a maintenance package. You will know the exact cost of running a vehicle under contract hire agreement.

Key Benefits:

• Releases another line of credit.
• Classed as a rental.
• Off balance sheet.
• Low initial outlay.
• Reclaim VAT on rentals.
• Fixed costs for the whole term.
• Ideal for companies, private individuals and employee opt out schemes.

Contract Hire is a simple solution to your fleet needs. You will know in advance exactly how much a vehicle will cost over the term of the agreement. This enables you to budget on your fleet costs. If you take maintenance this will fix the cost and includes servicing and tyres. At Lease2U we maintain that if you are doing less than 15,000 miles per annum then it is not cost effective to take maintenance. Road tax is included for the duration of the agreement on all contract hire agreements. All you have to do, is insure the vehicles and put fuel in it. At the end of the agreement simply hand the vehicle back but beware, at end of contract, only fair wear and tear are allowed so any bumps and dings have to be paid for. You will never own the vehicle as it is a rental.