Contract Hire and Leasing usually refers to the leasing of a vehicle for a fixed period of time at an agreed amount of money, this is usually agreed to be paid monthly throughout the entire length of a contract.
Contract Hire and Leasing is commonly used by companies as an alternative to purchasing a vehicle for business use, instead of having to find a substantial sum of money the vehicle can be leased at a much lower rate.
The key difference in Contract Hire and Leasing is that after the initial term (usually 3 or 4 years) the vehicle has to be returned either for an upgrade under new terms or cancelled if no further vehicle is required.
The lease agreement is a legally binding contractual agreement between two parties, the leasing agent and recieving company. Whilst some leasing companies will negotiate the terms, usually the best price is the advertised price as the leasing company has to take into account several factors, such as the intial deposit, the term of contract and annual mileage.
Contract Hire and Leasing rates are usually displayed with an accompanying figure (3+35, 6+35). The first number (shown in bold) indicates the deposit amount of the agreement, i.e. 3 x monthly cost & 6 x monthly cost. This sum has to be paid prior to the vehicle(s) being releasing to the recieving company.
All Contract Hire and Leasing agreement have a minimum contract term. This is usually shown as how many months the contract will last, i.e. 35 months. If you are considering leasing a vehicle, you must consider if you company can afford the rate of hire for the full term indicated.
This figure will be agreed prior to releasing the vehicle and indicates the MAXIMUM mileage per year the leased car can be used. It is to the leasing agents discretion how overuse of a vehicle is handled.
Here at CJ Tafft Ltd we have a wide selection of Vehicles available for Contract Hire and Leasing, anything from small hatchbacks to commercial vehicles. If you need a company car or van, or, if your requirements are unique and cannot be found on our website, then please do not hesitate to contact the Contract Hire and Leasing specialists, CJ Tafft Ltd; We are here to help, call us on the telephone 01253 876512 or Email Us at email@example.com