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Contract hire is one of the most popular types of leasing agreements for vans, light commercials and Heavy Goods Vehicles

This is because it allows you to drive the exact model you like; which you previously may have not been able to afford. Monthly payments are also very low which makes it an attractive proposition. Some people refer to contract hire as ‘operating lease’.

Key Features of Contract Hire

  • You only pay for usage of the vehicle
  • When the contract is over, you simply hand the vehicle back
  • Fixed mileage – your estimated yearly mileage is calculated; your monthly payments are then based on that, so it’s important accurately predict this to prevent excess mileage charges.
  • Contract hire is fixed long-term rental agreement

Why choose contract hire with Arc Fleet Services?

  • Low initial deposits
  • Cash flow improvements for you or your business
  • Fixed cost motoring
  • Flexible payment options
  • No financial risk from having to dispose of vehicles at the end of the contract
  • Full maintenance packages including our 24 hour 365-day recovery service.
  • The large fleet discounts ARC Fleet services receives from the manufacturers are factored into the hire rate, so you enjoy volume discount
  • Ability to claim back 100% of the VAT on maintenance or 50% of the VAT on finance

Whilst there are some great advantages to contract hire, we must also point out that there are responsibilities that the hirer should bear in mind:

  • The vehicle needs to be looked after and returned to us in a suitable condition
  • You must have fully comprehensive insurance in order to take out a contract hire agreement
  • You never actually own the vehicle and never have the option to buy it at the end of the contract period

Low deposits mean doesn’t put a strain on cash flow.

Contract hire is a flexible option; there are less worries involved when compared to purchasing a van outright. A vehicle’s depreciation is one of the biggest costs in motoring, but with contract hire you won’t have to worry about it whatsoever. 

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