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The standard contract normally comes with road fund license for the full contract term along with breakdown cover. In addition to this for an additional fee, dependent on the expected mileage you intend to cover, you can include a maintenance package which would also cover the costs for routine servicing, and consumables including tyres, exhausts etc. The vehicle rentals are related to the amount of mileage you intend to cover in the vehicle (the higher the mileage the more expensive the rental!
At the end of the agreement your vehicle is usually collected free of charge by the Contract Hire Company leaving you free to choose another vehicle without the hassle of disposing or part exchanging your old vehicle.
Contract Hire
Our site is totally independent and therefore can offer you genuine information about all types of funding for new vans including the good and bad points!
Please note that if you have exceeded the agreed mileage or the vehicle has excessive damage to it on collection then there will be extra charges to pay! A VAT registered Business can claim the VAT paid on the rentals back along with a proportion of the rentals also allowable against tax.
The main Benefits of Contract Hire For Business are
Low deposit normally equal to three monthly repayments for easier cash flow
Contracts from 12 to 48 months
Mileages up to 50,000 miles per annum
Road Fund License normally included for the full contract term
Vehicle is off your balance sheet
A proportion of the rentals allowable against tax
Maintenance packages available at an addition cost
Low fixed cost monthly rentals
Simply hand the car back at the end of the agreement (no deprecation worries)