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Business Contract Hire for Fleet Cars, Vans & EVs

Business Contract Hire could get your business moving

A Business Contract Hire agreement lets you lease business vehicles for an agreed length of time and mileage, without the hassle of losing value and maintenance that comes with buying your own. With Alphabet, you can manage your vehicle hire online thanks to time-saving services like Accident Management and Driver Risk Management. Once your agreement ends, you can return your vehicle or amend it for a new length of time and mileage.

What are the advantages of Business Contract Hire?

No residual value risk

You don’t need to worry about your vehicle losing value

We'll handle repairs

We look after your vehicle maintenance issues

More buying power

Our expert team makes your money go further with access to higher quality vehicles

Keeping your fleet running

You can leave fleet management in our expert team’s capable hands

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Got questions? We’ve got answers

Contract Hire (also referred to as ‘Operating Lease’) is a specific form of vehicle leasing. It's a long-term rental agreement that provides you with a vehicle for a predetermined length of time and mileage.

 

Under a Contract Hire agreement, you pay a fixed monthly rental in return for the use of the vehicle. The rental cost is calculated based on several factors, including the type of vehicle, the length of the contract, the agreed mileage, and the estimated residual value of the vehicle at the end of the contract.

 

When your contract comes to an end, you can either return the vehicle to us, or extend your contract if you want to keep using it (if applicable).

 

Contract Hire is a popular way of funding company car and business fleets.

Easy budgeting and better cashflow

With fixed monthly costs you always know where you are financially, so your business can benefit from accurate budgeting and improved cashflow.

 

No financial risk

The costs of ownership, like unexpected maintenance* or unpredictable resale values, rest with us so you can plan ahead with confidence.

 

Tax and balance sheet benefits

With Contract Hire you may be able to reclaim VAT on monthly rentals and even take your fleet off your company balance sheet.

 

Reduced capital expenditure

Buying vehicles is a significant business cost. Contract Hire can help you avoid that outlay and free-up capital that you can invest elsewhere to move your business forward.

 

Save time, hassle, and resources

Managing your fleet is quick and easy. Using our dedicated online portal, everything you need to configure, quote, order and more is at your fingertips.

 

 

 

*This only applies if you have chosen to include our maintenance package at the start of your contract. 

Personal Contact Hire (PCH) is a popular and easy way to enjoy the benefits of a new car every few years, without having to purchase one outright.

 

When the contract is set up, you will agree an initial payment and an annual mileage allowance. These factors determine how much your monthly payments will be. With Personal Contract Hire, you drive the vehicle, pay the monthly fee for a set period of time (typically 24 to 60 months) and then return it at the end of the contract.

 

As ownership of the vehicle remains with us throughout, you can simply return your vehicle and walk away when your contract ends. Any excess mileage or damage charges may apply.

Contract hire payments are tax-deductible, suiting to the below criteria:

 

  • You can claim back 100% of the VAT on your rental payments if the vehicle is solely used for business purposes. However, if the vehicle is also used for personal journeys, then you can only claim 50% of the VAT.
  • You can offset 100% of the cost of the vehicle depending on the vehicles emissions. For vans you can offset 100% of the cost, regardless of the emissions.
  • You can claim 100% of the VAT, and offset 100% of the cost, against your tax bill.
Discover alternative funding solutions

If Contract Hire isn't the right option for you...

Contract Purchase

A fixed term, fixed amount agreement that gives you all the advantages of a managed vehicle, with the option to buy it at the end of the contract.

Discover Contract Purchase

Finance Lease

Your business vehicles can sit on your balance sheet while you enjoy many of the flexible operating and finance benefits of Contract Hire.

Discover Finance Lease

Sale and Leaseback

Sale and Leaseback can give your business the immediate financial advantage of releasing the value tied up in your owned vehicles.

Discover Sale and Leaseback
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Short and long term rentals

Our flexible rental service gives you access to a wide range of vehicles; for one day, one month, or longer. Choose from over 600,000 vehicles in more than 2,500 locations in the UK, including electric, prestige, and commercial vehicles.
Discover Alphabet Rent

Speak to our team

Get in touch with us to discuss Contract Hire finance.

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