Contract hire and leasing

When a business wants to hire a vehicle from a car finance company such as a transport rental company it is known as UK contract hire leasing. These rental vehicles are owned fully by the UK contract hire leasing company and are known as either car hire if it is a car or van hire if it is a van. The client who is renting the vehicle is only leasing it they do not own the vehicle at all.

UK contract hire leasing can also be listed under the term lease hire. There are many businesses out there that offer this service to other companies out there however you will also be able to find some who offer it for private use as well as commercial use. The history of commercial contract hire can be found as far back from when people used to hire out their horses to companies such as post ponies known as pony express or messengers, for people who could not afford transport of their own.

If a company chooses to rent out a vehicle or a number of vehicles such as vans, trucks, buses, or cars from a car finance company who are offering UK contract hire leasing they will be bound by a contract that is drawn up by the rental company. This contract is very important and will determine how much the commercial business will have to pay each month and for how long they will have to pay that amount. The contract in question will inform the client about the leasing options that they have taken which contains the information regarding how much and for how long they will have to pay the lease.

Many UK contract hire leasing companies will also offer hire purchase options, which mean that instead of paying the money for the rental of the vehicle for a set period of months, the client will be making payments of purchase on the vehicle which means after they finish off paying all the payments they will actually own the vehicle itself instead of it still being owned by the car finance company who was offering the UK contract hire leasing.