Contract Hire
A Hiring Agreement where the vehicle remains the property of the Finance Company, in turn the vehicle is returned to the Finance Company at the end of the agreement.
The vehicle may be hired for a fixed period subject to status from anywhere between 2 to 5 years. The contract is for a set mileage and there are normally no additional costs assuming there has been no excess mileage, wear or damage. Also remember that the vehicles do not appear on the balance sheet.
Other information:
- Low initial and monthly outlay
- Rentals are allowable against taxable profit
- 50% VAT is reclaimable on Motor Cars and 100% reclaimable on Commercials
The Hirer pays for a fixed monthly rental which will include:
- Cost of vehicle funding
- Cost of vehicle depreciation
- Road Fund License (dependant on Manufacturer)
For an additional Rental the customer can include the following options to a contract hire package:
- All Maintenance, Service, Repairs, Tyres and Batteries
- Relief Vehicle
- Recovery service

