Contract Hire is a popular choice amongst companies seeking to remove assets from their balance sheet, eliminate the financial risk associated with disposing of their vehicles and benefit from the convenience of a full maintenance service at a fixed monthly cost. Contract Hire also allows companies to reclaim 100% of the VAT on the servicing element of the rental cost, and 50% of the VAT on the finance rental cost.

One thing to note is that, under Contract Hire, the customer is never entitled to purchase the vehicle from the Contract Hire Company, it must be sold to an unconnected third party at the end of the contract.

At the end of your Contract Hire contract term there are various options open to you.

You will need to decide whether you wish to keep your current company vehicle or dispose of it. Whatever you decide, the diagram below will be useful to you.

The next step is to contact Eiger Vehicle Leasing to let us know how you might like to proceed.

There is a wide choice of financial arrangements available to companies when sourcing a vehicle, but the continued growth in the Contract Hire market suggests that this funding method will remain the preferred choice for companies in the future.