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Finance Options Explained: A Brief Guide To Available Finance Options

What is Contract Hire?


Contract Hire offers you and your business a fixed monthly cost alternative method of motoring.

This is a mileage-based contract where you must ensure that the vehicle is maintained (As per the manufacturers recommendations) and the vehicles condition kept to the highest standard for the period of the hire. 

For some business users, Contract Hire is one of the most popular types of new vehicle leasing. 

That said, In the case of business activities that are likely to cause extensive damages that devalue the vehicle way – that may not be the case. 

This type of agreement offers a hire period from 2 to 5 Years based on your anticipated mileage request. 

Additional maintenance (or Fully Maintained) contracts are available and can be included within your agreement. (At an additional cost)

This Fully Maintained option can include all vehicle maintenance, service and even tyres for the duration of the contract.

Vehicle Road Tax is also included for the duration of the hire.

Benefits of Contract Hire:

  • Minimal Capital Expenditure
  • Low initial outlay (Initial Rental) especially if not VAT registered - compared to other funding methods.
  • Fixed Monthly Rental Costs – Great for forecasting cash flow for your business
  • Contract Periods from 24 months (2 Years) up to 60 months (5 Years)
  • The additional option to add ‘Maintenance’ to encompass a true fixed running cost of your vehicle
  • Initial Rental & Monthly Rentals or a proportion of the Rentals can be offset against the business profits
  • No need for you or your business to be VAT Registered, However If your business is VAT Registered you can claim up to 100% of the VAT on the rental payments and maintenance payments on your commercial vehicle.
  • No risk of vehicle depreciation – The finance company collects and arranges the disposal of the vehicle at the end of the agreement.
  • Ongoing advise and customer support during the agreement
  • Optional maintenance package available (Some inclusive of vehicle tyres)
  • Optional breakdown rescue cover and replacement vehicle cover available

Concerns of Contract Hire:

  • Extra care needs to be taken when estimating the term of the contract and the anticipated mileage (Excess mileage over the agreed contracted mileage will be chargeable - per mile +VAT) *This will be identified on the quotations and finance documentation
  • You are unable to own or purchase the vehicle
  • The charges and costs for early termination can be costly
  • Damage to the vehicle or failure to maintain the vehicle will result in additional charges at the end of the contract by the finance company.
  • ‘Fair Wear & Tear’ for the vehicle is accepted (As per the ‘Fair Wear & Tear Guide’)


Running Costs:  The running costs for the vehicle are your responsibility, Please take this into consideration when looking at Non Maintained Contract Hire. Maintenance, Servicing and ‘Wear & Tear’ of the vehicle is your responsibility.

Vehicle finance for businesses is a complex area and recommending the correct funding solution will depend on many factors including:

  •  Business Status
  •  Cash Flow
  •  Other Borrowings
  •  Vehicle Usage
  •  Suitability and Affordability

To ensure you get the very best advice, you should seek professional guidance from your accountant or a Business Finance Specialist.

Any agreement for vehicle funding will be completed without advice and based on your explicit instructions.

New Vehicle Solutions Ltd is authorised and regulated by the Financial Conduct Authority, our firm reference number for consumer credit is 685872 New Vehicle Solutions Ltd is an Appointed Representative of AutoProtect (MBI) Limited which is authorised and regulated by the Financial Conduct Authority for Insurance Mediation, their reference number is 312143. We are a credit broker and not a lender.

We are permitted to conduct Credit Brokering, Debt-Adjusting and Debt-Counselling in connection with the whole or partial settlement of credit agreements for vehicle finance and consumer hire agreements.

Company Registration Number: 8572112 – VAT Number: 166595858 Registered Office: New Vehicle Solutions Ltd, Tremains Road, Bridgend, CF311TZ

New Vehicle Solutions Limited does not and will not charge any fees for providing any Consumer Credit services. 

Some of our lenders may charge an administration fee to set up your agreement. 

Whichever lender we introduce you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow). The lenders we work with could pay commission at different rates. However, the amount of commission that we receive from a lender does not influence the amount that you pay to that lender under your credit agreement. Any renumeration amounts can be requested and disclosed prior to the conclusion of the transaction.

You can check this on the FCA Register by visiting the or by contacting the FCA direct on 0300 500 8082

Calls may be recorded for training and monitoring purposes.

Last Updated: 10/05/2021

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We are serious about your data security

Fair Processing Notice

To abide with General Data Protection Regulation legislations (GDPR) we would like to make you aware of how we protect and use any personal data submitted by you to New Vehicle Solutions Limited;

The personal data we collect from you will be used for the following purposes:

Broker services to supply a vehicle and/or finance for this vehicle’

This includes:

  • To process and provide quotation(s)
  • To process your application for finance (Should you choose to proceed)
  • To process your vehicle order
  • Review your finance product as part of an on-going client relationship
  • To respond to complaints and enquiries
  • To keep you informed regarding any new products or services that may be of interest to you

All of the afore mentioned will be confirmed via email mailing and/or telephone communication.

You may withdraw this consent at any time.

By consenting to this you are giving us permission to continue with your enquiry.

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*Full details of New Vehicle Solutions Limited Data Protection Policy can be found here

All offers are based on either Finance Lease or Contract Hire Agreements, These offers are subject to change at any time, you must be 18 or over and finance is subject to status and acceptance, vehicle availability and terms and conditions apply. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. All prices correct at time of publication. Error and Omissions excepted. Finance Lease / Business Contract Hire - *Available to Business Users Only (Self Employed / Sole Traders / Partnerships & Limited Companies & PLC) Subject to Status & Finance Acceptance. Figures quoted are based on Customer Maintained Agreements (It is the responsibility of the hirer to maintain the vehicle) Maintained Quotations available on request. Excess mileage and vehicle reconditioning charges may apply (Contract Hire). Hire Purchase / Lease Purchase - *Available to Business and Personal Customers & Consumers, Subject to Status & Finance Acceptance. Personal Contract Hire - *Available to Personal Customers & Consumers, Subject to Status & Finance Acceptance, Figures quoted are based on Customer Maintained Agreements (It is the responsibility of the hirer to maintain the vehicle) Maintained Quotations available on request. Excess mileage and vehicle reconditioning charges may apply (Personal Contract Hire). All vehicle images and vehicle descriptions on this website are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer. Finance provider documentation fees may also apply. Alternative agreement types terms, mileages and deposit quotations are available on request. New Vehicle Solutions Ltd does not and will not charge any fees for providing any Consumer Credit services. New Vehicle Solutions Limited can introduce you to a number of finance providers, we may receive a remuneration if you enter into an agreement with them. Calls may be recorded for training and monitoring purposes.

NVS Van Insurance