How does contract hire work?
You choose a car or van, how long you’d like to keep it, and how many miles you’re expecting to do in it each year.
Decide if you’d like any optional extras, such as heated seats or sat nav, and how
much you’d like to pay upfront. A typical up-front payment is equivalent to six months’
rental, but this can be reduced, or increased as required. All of this information is used
to calculate the monthly cost to you of leasing the vehicle. That’s the cost that you’ll
then pay each month over the duration of the contract. Once the contract’s over, as
long as the vehicle’s in good condition and within the mileage limit, you simply hand it back.
We have a great selection of offers on cars and vans to help you choose.
How long can I lease a vehicle for?
Contract hire gives you the option to lease a vehicle for a fixed period of time, which is between two and five years.
What is the cost of contract hire?
This depends on a number of factors, including the make and model of the vehicle you
choose, the contract length and the mileage you opt for. The lower the mileage over
the term of the agreement, the lower the monthly payment. You’ll need to make an
upfront payment followed by fixed monthly payments over the length of the contract.
The higher the upfront payment, the lower the monthly rental.
What mileage can I choose?
It’s up to you – although annual mileage options go from a minimum of 5,000 to a maximum of 50,000 miles per year.
We understand that it’s hard to predict what might be around the corner, and that our
customers’ driving needs can change over the period of their lease. That’s why we are
happy to talk through your options at any point in your contract should you need to
renegotiate your mileage. You might even be able to take advantage of a cheaper
monthly payment if you’re doing less miles than you thought.
Just contact us and we’ll take care of the rest.
What is covered by the monthly payments?
- Vehicle Excise Duty/Road Tax: Vehicle Excise Duty, commonly referred to as road tax, is included in the lease agreement, for the duration of the contract.
- Warranty: All new lease vehicles will come with the standard manufacturer warranty.
- Delivery: The majority of leasing deals include free delivery to a UK mainland address of your choice.
What's not covered/optional?
- Maintenance: Lease agreements do not include maintenance as standard, but you can often include a maintenance package with your lease, which will generally cover the
annual service, replacement tyres plus wear and tear items. NB If you do not include a maintenance package, it your responsibility to have the vehicle serviced
according to the manufacturer's service schedule. The book should be stamped at the time of service to keep the history of the car.
- Glass replacement is not included but is usually covered by your insurance policy.
- Insurance: It is your responsibility to arrange insurance from the day of delivery as insurance is not included.
All lease vehicles must also be insured on a fully comprehensive insurance policy.
What additional services are available with contract hire?
You can add maintenance and breakdown to the monthly lease cost. Doing this will give you even greater certainty around your vehicle costs.
What vehicles can I choose?
We supply all makes and models of Cars, Minibuses and Vans. AS there is a huge
selection of cars and vans available, and because you’re spreading the leasing
payments over a period of time, you might have more options than you think. You’ll
have the opportunity to drive a brand new vehicle, built to your specification, which
you might not be able to afford to buy outright.
Vans will normally be expected to include ply lining to protect the inside of the van.
Will I own the vehicle?
No, it’s owned by the leasing company (funder) that finances your contract hire.
What happens at the end of the contract?
In most cases, you simply return the vehicle and take out a new lease on a new
vehicle. We can arrange a seamless changeover. When the funder come to collect
your old vehicle, it will be inspected for any damage or issues. Providing you return it
within the terms of your contract and without damage, there won’t be any hidden
surprises. The funder takes on the risk of depreciation and deals with selling the
vehicle on. You just have to decide what to do for your next vehicle. Of course if you
love the vehicle you’re in, you can usually extend the length of your lease.
What is business contract hire?
Business contract hire lets businesses finance their vehicles in exactly the same way
as described above - over a fixed period of time, with an initial payment, agreed
mileage and subsequent fixed monthly payments over the duration of the contract.
The rentals are subject to VAT, which may be partly reclaimable depending on your
businesses VAT position. There may well be other financial advantages which we
would be able to advise you of on an individual basis.
What is personal contract hire?
Personal contract hire works in the same way as business contract hire, but the contract is between the leasing company and the individual.
The only other difference is that VAT isn’t reclaimable.
Here's some end-of-contract tips:
- You should return the vehicle in a safe and roadworthy condition, with all the appropriate documentation, spare keys and equipment.
- You should service the vehicle according to the manufacturer's service schedule. The book should be stamped at the time of service to keep the history of the car.
- Before the vehicle is returned, clean it properly to allow a thorough inspection.
- Read the BVRLA Fair Wear and Tear Guide to learn what's acceptable and what's not.
Why should I choose contract hire from OVL?
There are many reasons to choose OVL. We’re one of the UK’s leading vehicle leasing providers with over 30 years’ experience. With dedicated Account Managers,
we can help take the hassle away whether you need one or 1,000 vehicles.
We offer pretty much any make or model of vehicle currently on the market, covering cars and vans of all sizes and to suit a range of budgets.