Leasing and Contract Hire
Compare leasing structures, responsibilities and end-of-agreement choices without assuming that every lease offers ownership or the same tax treatment.
- Contract Hire
Contract hire is an agreement to use an asset, commonly a vehicle, for a fixed period and payment schedule without an automatic route to ownership.
- Excess Mileage
Excess mileage is usage above the mileage allowance in a vehicle agreement, which may trigger a charge under the contract.
- Finance Lease
A finance lease is a lease that transfers substantially the risks and rewards of owning an asset to the lessee without necessarily transferring legal ownership.
- Initial Rental
An initial rental is a payment made at the start of a lease or hire agreement, usually forming part of the contractual cost of using the asset.
- Maintenance Contract
A maintenance contract sets out services provided to keep an asset operating, sometimes offered alongside a vehicle or equipment finance agreement.
- Operating Lease
An operating lease is a lease that does not transfer substantially all the risks and rewards of asset ownership to the lessee under the relevant classification rules.
- Secondary Rental Period
A secondary rental period is a contractual period after the main term of some finance leases during which continued use may be permitted on stated rental terms.