Business Contract Hire
Definition: Contract Hire
You simply hire a vehicle from a leasing company, for an agreed period at a contracted monthly rate. With contract hire, the leasing company retains the ownership of the vehicle throughout the contract and at the end of the contract hire period, the vehicle is returned to them.
Contract Hire is the perfect option if a company wishes to reduce the financial risk and admin hassles of running their own fleet. The leasing company take care of everything for you, including, buying, servicing and the disposal of the vehicles at the end of the contract hire period.
Benefits: Contract Hire
Fixed monthly payments improve cashflow and ease budgeting burdens. With contract hire, all of the financial risks are met by the vehicle leasing company, leaving you secure in the knowledge that you need only make a fixed payment each month.
Vehicles that are leased under contract hire, are owned by the leasing company, and do not appear on your balance sheet as a capital asset. This improves your company’s borrowing ratio.
Administration of the fleet is kept to a minimum, under contract hire, as the leasing company are responsible for sourcing, buying, servicing and disposing of the contracted vehicles.
