Contract Hire

Contract Hire is exactly the same as hiring a car for the weekend but over a longer term. The customer hires the vehicle for a fixed period of time, with a given mileage limit & pays a fixed rental. At the end of the hire period, the vehicle is returned to the Contract Hire Company. Contract Hire attracts VAT & is usually only of benefit to VAT registered individuals & businesses.


  • Deposit - usually 3 rentals in advance
  • Fees - there are usually fees attached to a Contract Hire Agreement
  • Payments - rentals are fixed for the duration of the agreement
  • Mileage - there are mileage restrictions on a Contract Hire agreement
  • Insurance - the vehicle will need to be comprehensively insured for the period of the hire
  • Condition - the customer must keep the vehicle in a roadworthy condition
  • Interest Rate - there are no interest charges on Contract Hire agreements

Early Settlement

Cancelling a Contract Hire agreement early will attract a cancellation fee that will be declared on the agreement before signing.

End of the agreement

A Contract Hire agreement ends at the end of the hire period. The vehicle is returned & as long as the contract mileage has not been exceeded & the condition of the vehicle is as expected, the contract ends. Excessive wear & tear will attract a cost as will exceeding the contract mileage.

Voluntary termination

There are no voluntary termination rights on a Contract Hire agreement.

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