Contract hire car, also known as vehicle leasing, is a popular and cost-effective way of acquiring a car for personal or business use. It is a form of long-term rental, where you pay a fixed monthly fee to use a vehicle for a set period, usually between 12 and 48 months.
With a contract hire car, you don`t own the vehicle outright. Instead, you are essentially renting it for the duration of the contract, returning it at the end of the agreement term. This means you don`t have to worry about the depreciating value of the car or the costs of selling it on in the future.
The monthly fee you pay for a contract hire car typically includes the cost of the car, maintenance, and any other associated costs, such as road tax. You may also be offered additional options, such as breakdown cover or insurance, for an extra fee.
One of the main benefits of contract hire is that it allows you to have access to a high-quality, brand-new car without the need for a large upfront payment. Instead, you pay a fixed monthly fee that is often lower than the cost of buying the same car outright or financing it through a loan. Additionally, contract hire allows you to spread the cost of the car over a set period, making budgeting easier and more manageable.
Another advantage of contract hire is that it offers flexibility. At the end of the agreement term, you can choose to either return the car or enter into a new contract with a different vehicle. This means you can always have access to the latest models and technology without having to worry about selling your old car or dealing with the hassle of trading it in.
Contract hire is also a tax-efficient option for businesses, as the monthly rental cost can often be deducted from taxable profits. This can be particularly beneficial for small businesses or self-employed individuals who need a car for work purposes.
In summary, contract hire car is a cost-effective and flexible way of acquiring a car, without the need for a large upfront payment or the worry of depreciating value. It offers access to high-quality, brand-new vehicles and allows for easy budgeting and future flexibility. If you`re in the market for a new car, it`s worth considering contract hire as a viable option.