Contract Hire is a product for an individual or a business that wants fixed cost motoring and is confident about the mileage and condition of the vehicle over a set period of time. It is an easy and cost-effective way to fund vehicles and it is one of the best ways for you to control one of your larger monthly costs. Contract Hire is available with or without a maintenance package. A maintenance package will give you further fixed cost motoring with no hidden extras.
Key Considerations
- Contract Hire is a fixed term, fixed mileage rental agreement. This can make budget planning easier.
- You do not own or have the option to own the vehicle during or at the end of the agreement.
- Maintenance of vehicles can be included in the monthly rentals making it easier to budget against potential costly outlay. Typically, maintenance contracts cover Routine Servicing, Wear and Tear parts (e.g., Bulbs, Brake Pads, Exhausts, etc) MOT’s and Tyres (including punctures).
- If you chose not to take maintenance, you must ensure the vehicle is serviced and maintained at your expense.
- Most Contract Hire contracts can be terminated before the end of the agreement. However, there will be charges to do this.
- If you exceed your agreed total mileage, an excess mileage charge will be payable, worked out on a 'pence per mile' basis as set out at the start of your contract. Please think about your mileage carefully. Taking in to account personal as well as business miles.
- The vehicle is expected to be returned in a well maintained and suitable condition according to the BVRLA fair wear and tear guidelines. Any damage over and above these guidelines may be subject to additional charges.
- Any fines (e.g., speeding, parking, penalty notices etc) are your responsibility and may incur an additional administration fee from the funder if not settled directly by you.
- Vehicles must be insured with fully comprehensive cover.
- Your only definite option at the end of the contract is to return the vehicle. You need to understand that extending the contract beyond the original term is not guaranteed.
- No depreciation or disposal risk - the vehicle is returned to the leasing provider, meaning you are free to lease or purchase another vehicle without any outstanding financial obligation.
- All vehicles are driven deliveries, we can request trailer delivery, but this will be at an extra cost. Some Electric vehicle deliveries will incur delivery charges the cost of which will be passed on to you.
- All figures are liable to change if the VAT rate changes
Explanation of your quotation
Please be confident before proceeding that you understand each element of your quotation, a brief overview of each section is detailed below:
- Vehicle Description – Make and model of the vehicle chosen by you. Including specifics relating to gearbox, fuel type and drive train of your chosen vehicle.
- Factory Fitted Options – Optional extras over and above the standard specification of the vehicle chosen by you.
- Contract Term – The duration of your agreement in months commencing from the date your vehicle is delivered to you. All agreements are for a fixed term, fixed mileage
- Contract Mileage – Annual mileage, as specified by you, is fixed for the term of the agreement. Please be realistic with your requirements to minimise the possibility of excess mileage charges.
- Initial Rental – An advance payment which is typically equivalent to a number of monthly rentals, 3, 6 or 9. This payment forms part of the contract and is non - refundable. The higher the initial payment the lower your regular monthly payment. This Payment is usually taken by the finance company by Direct Debit. Depending on the funder, this can be taken approximately 14 days after delivery.
- Monthly Finance Rental – The fixed monthly payment for the lease of the vehicle paid to the funder.
- Monthly Maintenance Rental – Where applicable, the portion of the total monthly rental that is attributable to the cost of the service and maintenance package payable to the funder. This figure is indicative and will be confirmed on your finance agreement.
- Total Monthly Rental – The sum of the finance rental plus, where applicable, the maintenance rental. The Total Rental amount will be taken by Direct Debit each month by the funder.
- Effective Rental – This only applies to VAT registered business users on business contract hire agreements and refers to the total rental including any unrecoverable VAT.
- Excess Mileage Charge – Each mile travelled in excess of the contract mileage will attract a cost shown as pence per mile. This figure is indicative and will be confirmed on your finance agreement.
Quotation Acceptance / Pro - Forma Order
This quotation is not a contractual offer and may be subject to any changes in vehicle prices, interest rates or government legislation.
Figures are subject to vehicle availability and credit approval.
If you proceed with this transaction, we will process your application for finance and conduct searches with appropriate credit reference agencies who will keep a record of these searches.
Terms and Conditions and Cancellation Rights
If you cancel the Order, any vehicle processing fee paid will not qualify for a refund if credit has been secured with a finance company, matching the terms of the Order.
If you are a unregulated customer (e.g. a limited company, a limited liability partnership or a partnership with more than 4 partners) and choose to cancel your vehicle order, you will be liable for the costs of any service delivered which will be equal to one month's rental (+VAT) of the vehicle ordered.
If vehicle delivery has been booked there may me an additional fee of £200 (+VAT) to cover the cost of an aborted delivery.