Contract Hire
Contract hire is a fixed-term contract. Buyers pay a monthly fee, returning their van at the end of the contract. Find out more about Contract Hire, including some of the vans we have available, here.
At a glance
Fixed Rates
100% Tax Deductible
Zero Value Depreciation
What is Contract Hire?
Contract hire is a type of vehicle financing plan to fund the use of a van over a sustained period of time.
This finance plan requires a deposit which can be as little as your first monthly rental, and at the end of the contract you return the vehicle to the funder. There are terms and conditions which could incur additional costs on return, including mileage and vehicle condition.
The Advantages of Contract Hire
There are a few distinct advantages associated with contract hire:
- Fixed Rates: Contract hire ensures that monthly payments remain consistent for the duration of your contract. This allows you to forecast budgets much more accurately.
- Zero Value Depreciation: During a contract hire agreement, the vehicle remains in the funders posession. This means a reduced amount of responsibility in terms of vehicle ownership.
- 100% Tax Deductible: If your van is used solely for business purposes, contract hire permits you to offset 100% of the rental payments’ against your pre-tax profits
- Reduced Maintenance: As part of your rental, you also have the option of adding servicing costs to your package for added convenience.
The Disadvantages of Contract Hire
Some of the disadvantages of contract hire include:
- Mileage Restrictions: Contract hire imposes mileage restrictions from the outset, which some find restrictive. Exceeding this agreement will incur additional fees.
- High Termination Fees: If you decide to end your contract early, termination costs can be very high.
- Zero Ownership Potential: You’ll be unable to take ownership of the vehicle.
- Wear & Tear Costs: All vehicles under a contract hire agreement must be returned in a good condition. Otherwise, you will be charged over and above what’s stated in the Fair Wear and Tear Guide.
Is Contract Hire For You?
If you like the sound of contract hire, consider giving the van financing experts at Vanzone a call. We’ll be able to talk you through all the options we have available and find the perfect deal for you. Not sure which option is right for you? Talk to our friendly team on:
What our customers have been saying
Vanzone were very helpful throughout the whole process, dealing with my queries and keeping me informed of progress. As a first time buyer the prospect of buying an expensive item on-line without having seen it, or the seller, was a little daunting but they were very reassuring and easy to... Read more
Simon worked his socks off to make sure we got this deal over the line.
His attitude and work ethic to make sure it worked was brilliant so thanks. Highly recommend him and his team at van zone!
I’m am doing this review on behalf of my brother, as he was so pleased with the service he received and is unable to leave one himself.
He said it is the best customer service he has received everyone is very polite and helpful and his van is just perfect.... Read more
Top service sales, admin right through to delivery. Communication was superb! Very happy with my little van. Will be back to van zone for the next one.
I got a van (not the one I ordered because Nissan changed from NV300 to primastar and moved all the delivery dates).
Some flaky communication which caused some frustration as I was hiring a rental vehicle and needed to know when I would actually get a van.
Anyway, got a Dispatch which... Read more
Vanzone
37-39 Holton Road, Barry CF63 4HB, UK