Contract Hire FAQ’s

Please see a list below of FAQ surrounding contract hire for your information.

Does Contract Hire include Insurance?

Unfortunately insurance isn’t something covered by contract hire. A contract hire agreement will clearly state what is and isn’t covered in the Term’s & Condition’s (and this will be given to you by the leasing company prior to any documentation being signed) however, it is actually the responsibility of the hirer to obtain Fully Comprehensive Insurance for the duration of the hire period and a copy of this will need to be provided prior to delivery or collection of a contract hire vehicle. 

Is there a mileage limit?

Yes. Prior to your contract hire agreement being drafted you will need to provide the leasing company with an estimate of your monthly mileage, however, this information will be supplied during the quotation stage as it is required to formulate the contract hire quotation itself. The mileage limit will then be set on an annual basis and any additional mileage incurred on the vehicle is usually charged at a set price per mile. This will also be listed in the contracts terms and conditions and of course will need to agreed by both parties before any signatures.

How long does a lease have to be before it is considered contract hire?

This can differentiate from each leasing company, however for us we usually say anything from 12 months on wards to be considered long-term contract hire.

What are the benefits of Contract Hire?

The most appealing factor of contract hire to most individuals is the included maintenance package. For example with us, this includes being responsible for all the maintenance or repairs of any kind, vehicle servicing and tyre replacements as well as vehicle excise duty (Tax and MOT). Another really great benefit of contract hire is that a replacement vehicle is supplied should a customer incur any breakdowns. What this means is the customer is never without a vehicle and this therefore prevents any disruptions being caused to the individual or businesses day to day activities.

What is the maximum rental period for Contract Hire?

This can differentiate from each leasing company, however our maximum rental period for one of our vehicles is 60 months (5 years).

What happens at the end of my Contract Hire period?

At the end of the contract hire period the vehicle will need to be returned to the leasing company in this case; us, unless an extension has been granted. However, most of our customers usually wish to renew their lease and therefore continue hiring from us. In this case, the original contract hire vehicle is returned and a replacement vehicle is issued,  whilst we build a brand-new vehicle for the customer. This cycle can then continue for as long as the customer should see fit.

What happens if I want to terminate my Contract Hire lease early?

Once you have agreed to a Contract Hire lease and the required documents have been signed, this becomes a binding contract and therefore cannot be terminated prior to the agreed contract hire end date. You can of course return the contract hire vehicle at your discretion, but the monthly repayments of the lease will need to continue, until the agreed contract hire end date, as outlined in the contract hire terms and conditions.

What is the difference between Contract Hire and a Finance Lease?

Typically, there is no difference at all as both involve paying a monthly fee and will also include a maintenance package amongst other benefits, however, with a finance lease you are able to purchase the vehicle at the end of the agreement, usually for a set figure which is agreed at the beginning of the lease. With contract hire the lease is purely for hire purposes only.

Should you find any of your questions unanswered from this page, please do not hesitate to contact us via telephone (01392 666700) or email ( and we will be more than happy to answer any other questions you may have in more detail.