Contract Hire is often called Leasing. If you don’t intend owning the Minibus then Contract Hire may be for you. A low upfront payment then regularly monthly repayments from 6 months to 5 years. Maintenance and road tax can be included. At the end of the term simply hand the vehicle back, extend the term or purchase the vehicle if offered.
A relatively low deposit, which will reflect the overall term of the Contract Hire duration. Typically, this will be a few times the monthly hire cost.
As you will not own the vehicle, you are effectively paying the depreciation of the Van over the period. Initial cost, optional extras added, annual mileage will all impact on this.
Contract Hire is perfect for frequent upgraders as it allows for the vehicle to be changed at the end of the hire period. So if you replace your vehicle every three years, take out a three-year term.
Not owning the vehicle means you don’t have to worry about buying or selling the vehicle at the end of the term. Contract Hire rates are set, so should the value of the Minibus at the end of the term be less than estimated, you don’t need to worry.
If you choose to do so, you can add RFL, service and maintenance to your Contract Hire agreement, wrapping up all costs into one monthly payment.
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