BUSINESS CONTRACT HIRE

Business Contract Hire is a credit agreement between any trading business (sole trader, LLP, Ltd or PLC) and a finance company. The finance company owns the vehicle, and the leasee is essentially paying for the depreciation in value of the vehicle during the contract duration. Therefore to get the best lease prices possible, businesses should look to take out a contract on cars which hold their value well over time. There are many benefits for a business investing in contract hire compared to finance purchasing. If your company leases a vehicle on a contract hire basis, you will pay to rent the vehicle in monthly instalments for a contract of 24 or 48 months, for example. Once the contract is up, the vehicle is returned to the leasing provider, leaving them to worry about depreciation values and disposal of the car or van.