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.
*Damage and/or excess mileage charges apply. Details are available on request
Please seek independent tax advice to find out which finance product is right for your business.
Find out more about our responsibilities throughout the duration of the contract.
Find out more about your responsibilities throughout the duration of the contract.
Vehicle Service and Maintenance:
MOT and Insurance:
Fines and Penalty Notices: You are responsible for settling any penalties or fines connected with motoring offences (e.g. parking or speeding) with the issuing authority. Upon notification of any such offence, Vauxhall Finance will write to the issuing authority to transfer liability to you. We will charge you an administration fee for doing this. Please remember to pay all congestion charges, fines and fixed penalty notices immediately.
End of Contract:
Driving the Vehicle Abroad:
Contract Hire is available on new Vauxhall Cars and Light Commercial Vehicles (LCVs) between 24 – 60 months.