Contract hire can be a convenient way to run newer vans without owning them, but the details of the agreement matter.
Check the mileage allowance
Excess mileage charges can make a seemingly attractive contract expensive if routes change.
Understand maintenance coverage
Some agreements include maintenance and tyres; others do not. Know exactly what the monthly figure buys.
Return condition can matter
Commercial vehicles pick up wear. Read the fair wear-and-tear standard before taking the van, not when it is due back.
Think about early termination
If the business shrinks, changes direction or no longer needs the vehicle, ending a lease early can be costly.
Insurance is normally separate
Contract hire does not usually mean motor insurance is included. Make sure the fleet policy reflects the leased vehicles and their use.
How the headline rental can change
| Example contract | Approximate total rentals |
|---|---|
| £2,700 initial + 35 × £450 | £18,450 |
| £4,500 initial + 35 × £395 | £18,325 |
A lower monthly figure does not necessarily mean a lower overall cost. Check the initial rental, mileage allowance, maintenance, excess-mileage charge and end-of-contract condition rules.