What is contract hire?

Contract hire is a vehicle financing option. It represents a vehicle lease agreement between a funder and a lease holder based on the transfer of usage rights of the vehicle for a set period of time and mileage, at a fixed monthly cost.

Simply put, the company or individual hires a vehicle from a funder for an agreed duration and makes monthly payments to do so. The funding house owns the vehicle and it is returned to them at the end of the agreed term. There is therefore no ownership option for the lease holder.

Contract hire is available for both personal and business applications. The only difference between business and personal contract hire agreements is the inclusion or exclusion of VAT. Personal Contract hire agreements will include VAT in the prices quoted whereas business contract hire agreements do not.