Contract Hire is a popular vehicle leasing option for businesses, providing various benefits that can help companies manage their vehicle fleets more efficiently and cost-effectively. By reducing upfront costs, providing tax advantages, including maintenance services, and offering the ability to upgrade vehicles regularly, contract hire helps companies optimize their fleet operations while maintaining financial predictability and operational efficiency.

Here are some of the key advantages: It allows a customer (known as the lessee) to choose the vehicle they want, use it for a set period of time and an anticipated mileage and then give it back to the leasing company (known as the lessor) at the  end of the period of hire. The risks and rewards are therefore with the lessor under contract hire agreements. An the lessee is renting the vehicle from the lessor for a fixed period of time and pays a fixed  (normally monthly) rental for the use. The lessee is not responsible for the disposal or sale price of the vehicle at the end of the contract – which makes it a very easy and risk-free way to run a vehicle. The only risk to the lessee is where the agreed mileage limit is exceeded or if the vehicle is not maintained and kept in good condition.