Vehicle Finance Product

Contract hire for businesses that want predictable vehicle costs without ownership

Contract hire is a rental-style vehicle finance route commonly used for company cars, vans and fleets where budgeting and regular replacement cycles matter.

What is contract hire?

Contract hire is a business vehicle finance structure where the lender or funder provides the vehicle for an agreed term and mileage profile, while ownership stays with the funder throughout.

At the end of the term, the vehicle is handed back, which makes contract hire especially useful where the business wants set monthly rentals, controlled fleet costs and a defined replacement cycle rather than keeping the vehicle long term.

Predictable budgetingMonthly rentals can be fixed around term and mileage, making fleet forecasting easier.
No ownership commitmentA good fit where the business wants use of the vehicle, not long-term title to it.
Useful for fleets and company carsOften used where replacement planning, brand image or operational certainty matter.

Main benefits

Clear monthly cost, reduced ownership risk and a practical fit for businesses managing fleets or regular replacement cycles.

When businesses use it

When they want fixed rentals and plan to hand the vehicle back at the end rather than keep it on the balance sheet.

Best fit

Company cars, fleet operators and businesses that value refresh planning and predictable running structure over ownership.

Want to compare contract hire against other vehicle routes?

We can help you weigh up contract hire against PCP, hire purchase and lease structures based on mileage, vehicle type and business use.