Refinance Contract Hire Payments

Contract Hire is the official name for "Leasing"; you're effectively renting a vehicle for a set number of months for a fixed cost, on the condition you only cover a certain number of miles and return the vehicle in an acceptable condition.

What is a contract hire agreement?

A contract hire agreement is an agreement where you return the leased vehicle at the end of the contract – unlike a Personal Contract Purchase ("PCP") agreement where you pay an initial payment, monthly payments and at the end of the agreement, you either return the vehicle or pay the optional final payment and own the vehicle outright.

The monthly amount due on a contract hire agreement for a specific vehicle will vary depending on 3 things:

• The number of miles you will drive over the course of a year - the more miles, the more you will be expected to pay
• The length of contract you take out - Usually the longer the contract will mean the monthly payment will be lower
• The amount you pay as your Initial Payment - By paying more money upfront you will reduce the amount payable each month.

How Does Contract Hire Refinancing Work?

Refinancing your vehicle will likely involve a new lender taking over the ownership of the vehicle and your payments switching to this new lender.

Refinancing a hire purchase will usually involve paying the settlement fee on your current agreement, which ends your existing contract with your current lender and transfers ownership to a new lender.

The Benefits of Contract Hire Refinancing

There are many benefits to refinancing contract hire agreements, which include:

• Lowering monthly payments
• Shortening or extending the agreement terms
• Renegotiate mileage allowances

Usually you can choose to include vehicle maintenance, replacement tyres and road tax within your monthly payments, meaning the only thing left to pay is insurance and fuel!

How Broker4Cars Can Help With Contract Hire Refinancing

Our specialist vehicle refinancing team can help you refinance contract hire payments. Simply get in touch with our team and we will help you with the process to refinance a contract hire agreement with one of our lender partners.