Contract Hire gives you the ability to enjoy driving a smart without having to take on full ownership. With this option you lease your vehicle for a fixed period and for a fixed monthly rental. This rental includes the cost of your vehicles Road Fund Licence for the duration of your agreement.
How Contract Hire works
At the start of your agreement you pay an advance rental upfront. Your monthly rentals are based on the difference between the initial value of the vehicle and its projected residual value at the end of your agreement. Therefore, only a proportion of the vehicle’s value is repaid, which avoids a large initial expense and keeps monthly payments lower.
With a Contract Hire agreement, you can choose from our ‘No Maintenance’, ‘Service Only’, ‘Full Maintenance’ or ‘Full Maintenance with Tyres’ options. This means the costs are fixed over the term of the agreement allowing you to easily manage your budget and reduce any unexpected costs.
Contract Hire features include:
- No need for a large initial deposit.
- Pay an advance rental upfront.
- Fixed regular monthly rentals (that include VAT) means you can easily budget.
- Payments include the cost of the Road Fund Licence.
- Rentals are based on your annual mileage agreed at the start of your agreement.
- We manage the vehicle taxation process on your behalf, as well as sending MOT reminders.
- We will also administer any speeding and parking fines when necessary. Please note there is administration charge of £25 per fine.
- Repair and Maintenance options are also available.
- Rentals are allowable against taxable profits (proportionally).
- VAT is reclaimable depending on usage (proportionally).
At the end of your agreement
Simply return your vehicle with nothing more to pay, subject to it being in line with our Vehicles Return Standards as vehicle condition, excess mileage and other charges may be payable.