The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted in the vehicle finance market regarding Discretionary Commissions. We want to inform our customers that Anglo Scottish Asset Finance acts as a broker, not a lender, and if you believe you have been impacted by this issue, please contact your car finance lender. For further information, please click here

The Financial Conduct Authority (FCA) announced on 11 January 2024 that a review will be conducted

...Read more

Contract Hire


Contract hire, also known as car leasing, is a form of asset finance that allows you or your business to hire a vehicle in return for regular monthly payments.

Under a business contract hire agreement, you or your business can access a car or van over a set period and pre-determined mileage for a fixed monthly rental cost.

Commercial contract hire is a useful facility for a business looking to start or expand its fleet of vehicles without being forced to make a single, sizable outlay to buy outright.

Personal contract hire can also be used to spread the initial cost of purchasing a vehicle for personal use.

A contract hire agreement could allow you to get access to a vehicle and reap the rewards without the stress of dealing with administration, vehicle tax or maintenance.

Find out more about contract hire arrangements below or contact our team to discuss your requirements.

What is contract hire?

A contract hire agreement means that your business will be able to get access to a vehicle and spread the rental costs over a pre-agreed period.

Unlike other forms of car finance such as hire purchase, a contract hire arrangement stipulates that ownership of the vehicle remains with the leasing company. This makes contract hire a valuable facility for businesses that need vehicles but don’t wish to own them outright.

Contract hire terms are typically long-term, ranging from 24–60 months, although short-term contract hire can also be arranged.

At the end of the agreement, the vehicle will be returned to the leasing company, though some funders may offer the option to purchase the vehicle at market value.

If you’d like your business to own the vehicle you’re financing at the end of the agreement, we also offer hire purchase arrangements, wherein you will own the asset once the payment schedule is completed.

This field is for validation purposes and should be left unchanged.

Need help? Call us on 0191 410 4776

Benefits of contract hire

Contract hire, like other forms of vehicle finance, offers a greater level of flexibility and cash flow sustainability than buying outright. By spreading the cost of your investment, your business can create a competitive advantage, retaining the capital to invest elsewhere or deal with unforeseen costs.

Business contract hire is therefore particularly helpful for startups and SMEs, allowing you to free up company capital that might’ve otherwise been spent on purchasing vehicles outright. The fixed costs also allow for simpler budgeting and forecasting for the months to come.

Another benefit of contract hire is that you’ll have the option to rid yourself of the tedious maintenance tasks associated with car ownership.

Our maintenance packages can be included within your monthly payment, meaning you’re free from dealing with any administration, vehicle tax, insurance or maintenance.

We can even add vehicle servicing or courtesy vehicles to your contract, so you’re protected against breakdowns. Just fuel up and you’re ready to go.

Commercial contract hire

Commercial contract hire is a useful facility for sole traders and incorporated businesses alike, thanks to the scalability of our agreements. Whether you need to lease a single vehicle or an entire fleet, we can support you.

We’ll work with you to establish your business’ growth goals and find an agreement that suits you. Contract hire agreements can be used for specialist or standard vehicles, meaning they’re suitable for businesses in a wide range of industries. Trucks, vans, or other commercial vehicles are covered by our business contract hire agreements.

We’ve helped businesses in a vast range of sectors to get access to their vehicles, including:

If you’re a VAT-registered business and your business will be used solely for business purposes, your contract hire’s VAT will be 100% reclaimable! In the event that your vehicle is used for business and personal use, you may be able to reclaim 50% of the agreement’s VAT.

Personal contract hire

We can also help arrange contract hire agreements for personal customers. All of the associated benefits of commercial contract hire are also applicable to personal customers – fixed, manageable monthly costs can help facilitate your family planning and offer flexibility in your day-to-day life.

Because you won’t own the car during this agreement, personal contract hire is well-suited to people who like to change their car regularly – you won’t be tied down to a vehicle at the end of the payment schedule. This opportunity to make the switch also means you’ll be less affected by the depreciation of the vehicle.

If your vehicle will be for personal use, you can still reclaim on VAT – but only 50% of the VAT, as opposed to 100% for commercial use.

We can help find the perfect personal contract hire arrangement for you. Simply contact our team to find out more.

Long-term or short-term contract hire?

Contract hire is usually a long-term arrangement, lasting from two to five years. Spreading the cost over a longer period reduces the risk associated with meeting your monthly payments each month.

However, depending on your circumstances, we can also offer short-term contract arrangements. If you’re unsure how long you’ll need a vehicle for, or you’re sceptical about making a long-term commitment, we can help.

Thanks to our strong connections with our vehicle funding partners, we can offer flexible arrangements and a wider range of terms than traditional institutions.

Securing your contract hire agreement

Finding the perfect contract hire terms at Anglo Scottish has never been easier. We work with a hugely varied portfolio of over 70 funders, ensuring we can find the right terms to suit your business or personal requirements.

Once you’ve decided on the vehicle you want to finance, get in touch and our expert advisors will work with you to establish whether a contract hire agreement is right for you, or whether you’re better off opting for a hire purchase or commercial finance agreement.

We’ll reach out to our funders on your behalf and find the best lending criteria possible – once you’ve signed, we’ll carry out one final check and your finance will be ready.



asset how it works_1 decide


Decide on the asset you need to help your business grow


asset how it works_2 talk


Talk to us, tell us about your business and the asset you wish to acquire.


car-finance how it works_2 approval


We will reach out to our panel of lenders on your behalf to gain approval.


asset how it works_4 sign


Sign your document, once approved we’ll send you your documents to sign. After which we will transfer payment to your asset supplier

Final checks

asset how it works_5 final checks


We’ll do a final check to make sure everything is running smoothly, and you can start reaping the benefits of your new asset.

Contact us

So, whether you’re a business or an individual looking to spread the cost of your vehicle, we can support you. Your long-term planning, whether for a family or business, becomes far more manageable once your vehicle payments are split into fixed monthly costs.

Still unsure whether a contract hire agreement is right for you? Or simply want to find out more about the services we offer?

Our expert team of advisors are on hand to provide advice and guidance and help talk you through your options regarding vehicle hire.

Contact us today!


Maximising Asset Finance for Transport Businesses

Discover how asset finance can turbocharge growth and efficiency in your transport business, ensuring a smoother ride towards financial stability.

Driving Change: The Evolution of Electric Car Charging Infrastructure

Explore how the landscape of electric vehicle charging stations is rapidly transforming, paving the way for a greener future on the roads.

You Can Finance That? The Weirdest Assets Funded Over The Years.

It might surprise you, but asset finance isn’t all diggers and tractors, although we do finance a lot of them. We can actually finance almost anything (within reason), and in the past 17 years, we’ve certainly seen our fair share of odd assets.