Contract Hire

Contract Hire Van Finance is a hassle-free option when it comes to financing your van. It’s basically hiring a van for a longer period. You can enjoy fixed-cost motoring, a low deposit and low monthly repayments, which makes this the ideal way to finance your new van. What's more, with CH your road tax is automatically renewed at no extra cost.

You just pay the monthly rental covering the mileage allowance, taxes and maintenance and enjoy driving a new van. You can also remove the van from your balance sheet, avoid the issue of depreciation, avoid slipping into negative equity and, at the end of the term you can hand it back for a brand new one or simply walk away.

Because the rental fee is set in line with the van's depreciation, the CH offer is often more cost-effective than choosing to buy your van outright or on a Hire Purchase deal.

How does Contract Hiring work for vans?

A Contract Hire Van agreement is similar to the finance lease deals, with the difference being that at the end, the van will be returned to the van leasing company. There will be an upfront payment (1 to 21 months) plus a fixed monthly rental fee. The price will be influenced by the mileage and is based on the list price of the vehicle.

What happens at the end of a CH van lease deal?

When the CH agreement ends, you must return the vehicle to the van leasing company. If the mileage is within the estimated limit and the car is in its expected condition, the agreement ends with no additional fees. Surpassing the stated mileage and excessive usage of the vehicle will attract an extra cost, as mentioned in the van leasing deal that you will sign.   

What are the main benefits of this type of contract?

• Cash flow – by opting for van leasing (CH), the van won't show on your balance sheet. This way you don't need to worry about cash flow or the problem of depreciation and negative equity.
• Fixed monthly rentals – helps to aid budgetary control and cash flow.
• Low deposit – normally the equivalent of three monthly rentals. £0 deposit is not available on a lease vehicle.
• Tax advantages – monthly rentals include VAT which, if you're registered, you can reclaim every quarter.
• Tax relief – you can offset 100% of the monthly rentals against profits
• Mileage restrictions – you choose the mileage that's right for you and your business. If you need to do more than you initially thought, then any excess mileage will simply be charged at the end of the term (the pence per excess mileage charge will be clearly indicated in your car leasing offer).
• Depreciation – the van's depreciation is the risk of your leasing provider, not you.
• Optional maintenance packages – you can choose to pay a little extra per month to cover any costs associated with servicing, roadside recovery, repairs and tyres.
• Road Tax included – your tax will automatically be renewed.

Can you get out of a Contract Hiring agreement?

Yes, it is possible to end your van hire contract earlier. However, this will come with a cost. The ‘terms and conditions’ section should mention the fees applied for exceeding the mileage and early cancellation. Read the contract in detail and consider all the possible options before any decision is made.

Is Business Hire a good Idea?

This is a good choice, mostly popular for VAT-registered companies. It is well suited for companies that wish to drive new vehicles and upgrade when the lease deal ends, have included a maintenance package, or simply avoid the negative equity risk, as they don’t own the vehicle. Overall, a van leasing contract is one of the hassle-free van leasing deals, used by different businesses, from sole traders to corporate large fleets.

How can we help you decide what type of van leasing is best for you?

We are committed to helping all-size businesses find the best van finance deals according to their true needs, at competitive prices. We are the official dealer for Renault, Peugeot, Citroen, Fiat and Nissan, but we also work with other top brands in the industry like Vauxhall, Ford and Volkswagen. We can hire a range of sizes - small, medium and large vans, petrol, diesel or electric. EVs are great for fuel economy, but their performance will depend on the weight and type of cargo you transport.

Choose the model that you want, its colour and options such as electric folding mirrors or van cruise control, commit to an annual mileage of up to 60,000 miles per year, make the offer's initial payment (usually from 3 to 9 months), and you’re ready to go. Road tax, servicing, and even tyres can be included in the monthly rental, so you will be responsible only for the fuel and van insurance. 

Business Contract Hire (BCH) is a popular choice for businesses, but it may not always be the best one, depending on the circumstances. Have a quick look at our van finance deals page to learn the pros and cons of all the options or read more about other types of financing like Hire Purchase (HP) or van Finance Lease.