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Contract hire explained by Central Self Drive – Confidence In Contract hire

Contract hire is essentially the rental of a car or van at a heavily discounted price based on a long-term lease, prices will vary depending on vehicle type/spec, service and maintaining levels required & anticipated annual mileage.

£195.00 per month

9 x 35.

10,000 Annual Mileage
10p Excess Mileage
£200 admin /doc fee

£200.00 per month

3 x 35

10.000 Annual Mileage

10p Excess Mileage

Breaking down contract hire quotes

Payment profiles

  • On quotes these will often show as above 3 x 35 or 9 x 23 ect.
  • The 3, in this case, means 3 monthly payments upfront
  • The 35 means the monthly payments thereafter


Mileage allowance & excess miles charges.

This simply means for each year you have the vehicle on a lease you are permitted to do 10000miles in the lease vehicles so assuming you took the vehicles for 3 years at the end of the contract you would have an allowance of 30000 miles. Should you go over this limit then you can expect to pay an excess mile’s charge.



A large number of our customers turn to contract hire as they feel they have a tighter budget control over the running costs of the vehicle and know exactly what the vehicle will cost them each month without being hit with any unexpected mechanically bill. Non main is referring to the maintenance of the vehicle you will have a choice as to whether you would like to include service and maintenance or not, if you opt for no service and maintenance you will be liable for the servicing and MOT of the vehicle in addition to any further unexpected costs that the manufacturer warranty may not cover. Central Self Drive offers both these options, most of our customers opt to have service and maintenance factored into their lease agreement.


Comparing contract hire

Just because the monthly amount is less it doesn’t mean it’s the cheapest!

Many leasing companies have large initial upfront payments, for example, a 9 x 35 making the monthly amount look cheaper.

If we take the 2 quotes below, we can see by a quick calculation which quote is truly the cheapest.

Quote 1

9 x 35 at £195.00 per month

£195 x 9 = £1775.00

£195 x 35 = £6825.00

£1775 + £6825.00 = £8600.00

total amounts payable over contract, divided by 36 months
= £238.88 for your true monthly cost.

Quote 2

3 x 35 at £200 per month

£200 x 3 = £600..00

£200 x 35 = £7000.00

£7000 plus the initial rental of £600 = £7600

total amounts payable over the contract, divided by 36 months
=£211.11 for your true monthly cost.

For a more trusted transparent approach on contract hire and leasing call one of our fleet managers today for your bespoke quotation or fleet analysis.

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