Companies can lease vehicles with or without a maintenance agreement (if they wish) and contracts can also include try cover and a relief vehicle in the event of a breakdown. The vehicle remains the property of the lessor (contract hire / leasing company) and never becomes the property of the lessee (the company renting and using the vehicle).
Contract hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element.
Tax advantages and reduced administration help businesses to budget more accurately for their vehicle requirements. Contract hire is available to sole traders, partnerships and limited companies.
Personal contract hire is available for private individuals, although in 2009 many of the big leasing names pulled out of this market to focus on business contracts.