Contract Hire Explained

What is Contract Hire?

In essence, you lease (long-term hire) a brand new vehicle for a fixed period - normally two to four years - at a predetermined annual mileage allowance to suit your needs.

Contract Hire is a simple and very cost effective way to fund any number of vehicles. Simply choose the vehicles you want, and you pay a fixed amount every month.

These payments go on for an agreed period of time, usually between one and four years. At the end of your lease agreement, you return your vehicle and you're free to choose another one.

Importantly you never own the vehicle. As it never appears on your balance sheet, it remains a business expense. Because we take the vehicle back, we agree up front the mileage your drivers will do on an annual basis and the number of years the contract will run.

Using this information, we calculate how much the car will be worth at the end of the contract, which is factored into your monthly payments.

Benefits of Peugeot Contract Hire Offer

Our Peugeot Contract Hire option makes managing your outgoings easy with regular fixed rentals and no depreciation to worry about. And with bucketfuls of options with which to tailor your agreement to your specific needs, you can concentrate on your business without worrying about your cars. Particular features of our Peugeot Contract Hire include:

  • Available from only one month's rental payment
  • Fixed rentals for the life of the agreement based on the mileage you choose
  • Pay monthly, quarterly, twice yearly or annually - whatever suits your business best
  • Contracts available from one to four years
  • Vehicle Excise Duty and Peugeot Assistance included in your monthly rentals for the duration of the agreement
  • Shell fuel card provided free of charge (though this is subject to your company's status)
  • Off Balance Sheet funding
  • Rentals can be offset against taxable profits
  • VAT is recoverable on rentals (100% for commercial vehicles and 50% for cars where private use is allowed).

At the end of the agreement simply return the vehicle and, providing your mileage is within the agreed limits and the vehicle has experienced normal wear and tear, you can walk away. But we think you'll be back.