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Contract Hire

Contract Hire has grown in popularity over recent years, with many finance companies recommending this option to smaller businesses.

A Contract Hire agreement allows you to drive a brand new van without worrying about the vehicle losing value over time. As you will not own the van, you can return the vehicle to the finance company at the end of the lease instead of having to sell it later. This means the rental payments only need to cover the difference between the new price and the valuation of the vehicle at the end of the lease, plus interest costs.

With Business Contract Hire, you can usually claim VAT back on the monthly payments, making this a great option for limited companies.

When entering into any financial agreement, you need to be sure to have all the information at hand. Here at Van Ninja, we offer an honest and reliable service – so we’ve pulled some information together to help you make an informed choice.

To find out more, have a look at the Frequently Asked Questions below. Or check out or recent blog post on what to look for when comparing lease deals.

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  • What is a contract hire agreement?

    Under this type of contract or agreement, your business has a specific vehicle for a set period of time at an agreed monthly fee. At the end of the agreement, the vehicle is returned (to the finance provider) and you don’t own the vehicle.

  • What are the benefits of a contract hire?

    Your agreement and monthly price is based on the estimated mileage and your desired contract length. These choices can help you select a vehicle which matches your budget.

    Your vehicle will be yours to drive during your entire agreement and payments are fixed at the outset so you can be reassured that costs will never go up. You don’t need to worry about vehicle depreciation as you will hand it back to the finance provider at the end of your deal.

  • What are the disadvantages?

    You won’t own the vehicle and there will be no option to purchase it further down the line. It’s your responsibility to look after vehicles and you could be charged at the end for any damage.

  • What do I need to provide to take out a contract hire?

    You need to provide proof of address and contact details and business information (including company name and registration numbers) along with bank information.

  • Are there any mileage limits?

    Yes, we currently offer a range of annual mileage allowances up to 50,000 miles per annum.

  • How can I ask any questions?

    If you have any questions related to finance or a Contract Hire Agreement please give us a call. Our experts are happy to talk you through the details of your agreement so you can decide if it’s the right option for you.

    *Business customers only.

Got a question?

If you have any questions about a contract lease for your business - please get in touch we'd be happy to help.

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