Business contract hire is a form of business finance designed for companies to acquire a vehicle and pay a monthly amount. This monthly figure reflects the vehicle’s depreciation, based on the agreed annual mileage. It allows businesses to drive a new or nearly new vehicle for a set period of time, without experiencing the significant loss in value associated with ownership. Agreements can also include running costs such as servicing, maintenance, repairs, and tyres.
Personal contract hire is an agreement for private individuals to acquire a new vehicle without the large upfront cost of purchase or hire purchase. Agreements typically last 2, 3, or 4 years, with an agreed annual mileage. Maintenance can also be included. PCH provides a cost-effective way to drive a new vehicle and protects against depreciation usually associated with outright purchase.
Typical contract hire terms are 2, 3, 4, or 5 years. Other terms such as 30, 42, or 54 months may also be available.
A payment profile describes the payment structure of the agreement, including:
Examples of profiles for a 36-month agreement:
The higher the initial payment, the lower the monthly payments.
The initial payment is the upfront amount paid at the start of the agreement. It is usually equal to 3, 6, 9, or 12 times the monthly rental, though customers can choose to pay more to reduce monthly costs. You can elect to pay for example, £1,000. £2,000, £3,000 etc as an initial payment.
Yes. If you own a vehicle outright or are settling a finance agreement, we can buy your existing vehicle. The proceeds can then be used, in full or in part, as the initial payment for your new agreement.
A pre-registered vehicle is a brand-new vehicle that has been registered to a dealer, broker, or leasing company (but never owned or driven by a private owner). This is usually done to unlock manufacturer discounts, which are passed on to the customer as lower monthly rentals.
Yes. Most leasing companies allow private plates. Since the leasing company is the registered keeper, you must obtain their permission, and they will need to be listed as the nominee on the V750 certificate of entitlement. A small administration fee usually applies.
At the end of the agreement, you can either:
There is no collection charge, but:
Yes. You can request an early termination or settlement figure from the leasing company. This is the amount payable if you wish to end the agreement before the end of the term.
An excess mileage charge may also apply if the vehicle has exceeded the agreed mileage at the time of settlement.
The British Vehicle Rental and Leasing Association (BVRLA) sets guidelines that distinguish between:
This guide is available on request.
Fair wear and tear: This is caused by everyday use of the vehicle that causes marks from normal driving and use.
Damage: This is caused by event that are not from everyday use. Examples include things such as impact, deep scratches, dents, wheel gouges, or torn upholstery due to misuse.
Specifically for contract hire and doesn't relate to finance lease, if you exceed your agreed annual mileage, you will be charged a set rate per mile, often listed as PPM (pence per mile) on your agreement.
No. Excess mileage rates vary depending on the vehicle and how much it depreciates each month / year, in relation to the additional mileage it will do over and above the anticipated annual mileage.
On a contract hire agreement (not a finance lease or hire purchase agreement), the annual mileage is the number of miles you expect to drive each year. This will determine the monthly payment on a contract hire agreement.
The annual mileage is agreed at the start of the contract. If you exceed the limit, excess mileage charges apply. In some cases, the mileage allowance can be adjusted mid-contract. However, do not try to adjust them in the first 6 months or last 6 months of the agreement.
Benefit in kind (BIK) is a tax payable by employees who receive a company vehicle. Tax is due on the BIK value of the vehicle itself and any fuel provided by the employer.
The P11D value is the vehicle’s list price plus delivery charges, excluding discounts. It does not include first registration fees or road tax.
Yes. All leased vehicles must be insured with a fully comprehensive policy that complies with UK law. The leasing company will not allow delivery without suitable cover.
GAP (Guaranteed Asset Protection) Insurance covers the difference between your insurance company’s payout and the outstanding finance if your vehicle is written off or stolen and not recovered. It provides peace of mind that you won’t be left with a shortfall to pay before having to find the deposit for your replacement vehicle.
This refers to your ability to meet financial commitments. An electronic credit check will review your financial history and current obligations to assess your suitability for a new agreement or to replace your existing agreement.
You’ll need to complete an electronic proposal form providing personal or business details. This information is used solely to assess creditworthiness for the specific application and nothing more.
You must be at least 18 years old, hold a full valid UK driving licence, and have a good credit score.
A vehicle broker is an independent intermediary who negotiates on the customers behalf what the discounts are on the price of a vehicle with dealers and also finance terms are with lenders.
Yes. Curious Vehicle Management Ltd is a credit broker, not a lender.
The British Vehicle Rental and Leasing Association (BVRLA) is the UK trade body for leasing. It protects both leasing companies and customers, ensuring fair practice.
The FCA regulates the UK financial market. It protects both consumers and businesses in finance-related matters. Kudos Vehicle Management Ltd is authorised and regulated by the FCA (registration number 844061).
Range refers to the distance that a fully electric or plug-in hybrid vehicle can travel using the electric charge, before the battery needs recharging.
Range anxiety is the worry that a person feels, when the range of an electric vehicle battery may run out, before reaching the destination.
On a finance lease, you pay an initial rental and monthly payments. At the end, a residual (balloon) payment is set to reduce the monthly payments, and falls due. The amount of this payment is determined at the start of the agreement. This is based on the vehicle’s projected mileage and value at the end of the lease.
Yes. At the end of the agreement, the customer is responsible for the residual value. If the vehicle sells for more than the balloon, you may receive equity back. If it sells for less, you are responsible for the shortfall.
Yes. You can lease your vehicle for use anywhere in the UK.
Yes. You can take your vehicle abroad. You will need to obtain the necessary paperwork from the finance company. If you allow as much time as possible, and ideally no less than one month’s notice, this can be organised smoothly.
Yes. We provide comprehensive fleet management services for businesses with multiple vehicles. This can be as detailed as you require, or a more basic management arrangement depending on your needs.
Yes. You can swap / change / upgrade or dispose of your vehicle mid-contract. This may incur early termination costs, but you can assess whether it is necessary, based on your situation.
Yes. We supply vehicles such as refrigeration vans, vans with tail lifts, tippers, drop-sides, and road sweepers. If you require specialist equipment, it is likely we already supply that type of commercial vehicle. Please contact us for full details.
If your vehicle breaks down, it is covered from the date it was first registered with Roadside Recovery. This is usually 12 months cover however, certain manufacturers provide cover for up to three years.
If the fault is deemed a manufacturer’s fault, the vehicle is covered under the manufacturer’s warranty for the period of the warranty. This may need to be extended at the customers expense during the agreement, depending on the age and mileage of the agreement. Under warranty, repairs will be carried out by a main dealer. If the fault is caused by what is termed as "driver abuse", the customer is responsible for repair costs.
If your agreement includes a maintenance plan, regular servicing, wear and tear part and tyres are covered. If the agreement does not include maintenance, these costs are the responsibility of the customer.
Yes. We supply vehicles that comply with low-emission rules in cities across the UK. Options include low-emission combustion engine vehicles and electric vehicles, depending on local requirements.
Yes. Vehicles are delivered free of charge to West Yorkshire, all Yorkshire and now in fact all destinations on the UK mainland. For remote areas, a nominal delivery fee may apply.
Yes, service, maintenance, replacement tyres and puncture replacement can be added to your agreement. Please contact us directly for full details.
Depending on the type of agreement you choose to finance your vehicle, this will determine what happens at the end of the agreement. A finance lease agreement allows you the flexibility to keep / sell or part exchange your vehicle. A vehicle on a contract hire agreement typically goes back to the finance company. Please contact us directly for us to provide specific information, given your preferred agreement.
Yes, a vehicle can have sign writing on it. On a contract hire agreement, the sign writing must be removed prior to the vehicle being returned to the leasing company. On a finance lease agreement, it is not mandatory for the sign writing to be removed, although it is beneficial to do so because removal of the sign writing will enhance its value.
Yes, a vehicle can have accessories or shelving fitted to it. On a contract hire agreement, these should be removed prior to the vehicle being returned to the leasing company. On a finance lease agreement, it is not mandatory for the accessories to be removed, although it is beneficial to do so because removal of them will enhance its second hand value.