Contract Hire

WHAT IS CONTRACT HIRE?

Contract Hire is a type of agreement which involves renting a vehicle for an agreed period of time for a fixed monthly cost. This can be referred to as 'PCH' or Personal Contract Hire if it is for personal use, and BCH or Business Contract Hire if the contract is for business. You pay an initial, upfront rental amount and then a regular monthly rental amount to use the car for the agreed period of time, commonly 24 or 36 months.

There will be specific mileage conditions which will be agreed from the outset and will apply for the duration of the contract. It is important that your agreement accurately reflects your predicted mileage as you will have to pay an excess if you exceed it. 

Under a Contract Hire agreement, you do not own the Vehicle and you will be required to hand it back to us at the end of the agreed term. You also have the option to include a Service, Maintenance and Repair (SMR) package for an additional cost. When the contract expires, you simply return your car*, and you can speak to us about your next car.

Visit Vauxhall to see the latest Personal Contract Hire offers or see the latest Business Contract Hire offers at Free2Move Lease.

*Damage and/or excess mileage charges apply. Details are available on request


WHY CHOOSE PERSONAL OR BUSINESS CONTRACT HIRE?

Fixed term product

 Fixed monthly rental payments

 Vehicle Registration is included in the price of the rental payments

 Optional service and maintenance plans available

 Road Tax (Vehicle Excise Duty) is included in the rentals (but if the duty increases during the term, you will have to pay the amount of the increase, if it falls, you will get a refund)

 The Vehicle is returned at the end of the agreement, removing concerns over depreciation and disposal

WHY CHOOSE BUSINESS CONTRACT HIRE?

 Contract Hire qualifies for hire allowances that can be offset against taxable profits

 VAT-registered companies can claim up to 100% of VAT on rentals of commercial vehicles and up to 50% of VAT on rentals of cars subject to normal VAT rules

 There is less administration and no responsibility for disposal of the vehicle

 Depending on the nature of your business, Contract Hire may provide a source of off balance sheet funding

Please seek independent tax advice to find out which finance product is right for your business.





See a breakdown of Contract Hire agreement and how it works

Responsibilities

ADDITIONAL INFORMATION

Contract Hire is available on new Vauxhall Cars and Light Commercial Vehicles (LCVs) between 24 - 48 months.

For further information please read the following:

Visit Vauxhall to see the latest Personal Contract Hire offers or see the latest Business Contract Hire offers at Free2Move Lease.