Contract Hire / Personal Contract Hire

Contract Hire is an ideal solution for both companies and private individuals who do not want the financial risk of running their own vehicles.

How Evolution Contract Hire Works

Contract car hire from Evolution enables you to hire a vehicle of your choice for an agreed period at a fixed monthly cost. The contract hire company will retain ownership of the vehicle and at the end of the contract, the vehicle will simply be returned to us. As the contract hire company, we will take care and responsibility for all the risks involved from interest rates to residual values and we will even take care of maintenance costs if our optional maintenance package is taken.

In addition to the maintenance package, you can also choose our full breakdown and recovery service, which includes home start and relay, and relief vehicles for use in the event of accident or mechanical breakdown.

What are the Key Benefits of Contract Hire?

Off Balance Sheet Funding
Vehicles on contract hire will not appear on your companies’ balance sheet, the removal of capital assets from your balance sheet can enhance a company’s borrowing (gearing) ratio.

VAT Benefits
The VAT on the purchase price of the vehicle can be claimed back by the contract hire company, they pass these savings onto you in the form of lower monthly rentals. Once the vehicle is on the road you can claim back 50% of the VAT on the finance element (if the vehicle is available for personal use or 100% if only available for business use) and 100% of the VAT on the maintenance element of the rental payments.

Fixed Monthly Budgeting
Monthly repayments are fixed throughout the contract with initial deposits typically the equivalent of three months repayments, making budgeting much easier, which in turn can improve your company’s cash flow.

Reduced Financial Risk and Administration
Contract Hire removes the risks involved in running a company vehicle, from residual values, maintenance, and interest rates. This leaves you to pay the monthly contract hire rental, and to insure and fuel the vehicle.

The additional administration of sourcing and disposing of your vehicles is also handled by the contract hire company giving you more time to focus on your core business activities.