Contract Hire is a simple leasing agreement which enables you to drive a new vehicle without the need to own it.
How does Contract Hire work?
Once you have chosen your vehicle you need to decide on your initial rental, how many miles you drive each year, and how long you want to lease the vehicle for. These will be used to calculate your monthly payments.
You can also choose to include a level of servicing and maintenance into your monthly payments, keeping your vehicle in good condition.
Once you have paid all outstanding rentals, you simply hand your vehicle back, subject to fair wear and tear and excess mileage charges.
As part of a Contract Hire agreement you can include different levels of servicing, giving you one monthly payment for a vehicle and upkeep.
Update your vehicle regularly
As you simply hand the vehicle back at the end of each agreement, it means you are able to keep upgrading your vehicle for the newest model.
No risks of ownership
As Contract Hire is a leasing agreement, you have no risk of the vehicle falling in value. You simply pay your monthly rentals and hand the vehicle back subject to fair, wear and tear and excess mileage.
If you would like your company to have new vehicles without having them on your balance sheet, Business Contract Hire could be a good option. If you are leasing as a business customer, you may be able to claim back the tax.
Would Contract Hire suit me?
Contract Hire is a straightforward leasing agreement, which can help a range of people get into a new vehicle. It may be the best option for you if:
You drive a low mileage
You don't want to own the vehicle
You want to upgrade regularly
You take good care of your vehicles
It has never been easier to find a vehicle to lease on Contract Hire. VWFS DRIVE enables you to search for a range of vehicles from Volkswagen Group brands available today