Contract Hire Agreement

Contract Hire Agreement: Create a Verified Vehicle Hire Agreement

A verified contract hire agreement is a long-term vehicle rental, in which an owner lets a hirer use a car, van or other vehicle for a fixed term in return for regular payments. It sets out the vehicle, the term, the rentals, any initial payment and deposit, mileage limits, insurance, maintenance, warranty and what happens at the end of the hire. Robot Lawyer drafts the agreement from your answers, for the law of the country or state you choose. On the Verified plan, a legal professional checks it before you sign.

CONTENTS

What Is Contract Hire?

Contract hire is a form of leasing where the hirer never owns the vehicle. They pay to use it for an agreed period and mileage, then hand it back. A clear agreement sets out who pays for what, so there are no surprises about excess mileage, damage or early termination.

When Do You Need One?

• Business vehicles
  Hiring cars, vans or lorries to a business.
• Private hire arrangements
  Letting a vehicle to an individual on a long-term basis.
• Fleet owners
  Standard terms for vehicles you hire out.

What's Included in Your Agreement?

• The vehicle
  Type, make, model, year, colour and VIN.
• Term and payments
  The hire period, the initial payment, monthly rentals and the payment date.
• Mileage
  The annual allowance and the charge for extra miles.
• Insurance
  Minimum cover, maximum excesses and any gap cover.
• Warranty and maintenance
  Any remaining manufacturer's warranty and an extended warranty, where offered.
• Fees and late payment
  Any other fees and late-payment charges, exactly as you set them.
• The end of the hire
  Returning the vehicle, fair wear and tear and early termination.

Hire Agreements and Consumer Credit (UK Only)

In the UK, hiring a vehicle to an individual for more than three months as a business can be a regulated consumer hire agreement under the Consumer Credit Act 1974, which needs FCA authorisation and specific documents. Hire to companies is usually not regulated. If you hire vehicles to consumers as a business, take specific advice.

How It Works on Robot Lawyer

1. Answer the questions
   Tell us about the owner, the hirer, the vehicle and the payments.
2. Generate your agreement
   We draft a complete contract hire agreement.
3. Get it verified
   On the Verified plan, a qualified legal professional checks the agreement within 24 hours and makes amendments where needed. See how our documents are verified.
4. Sign and hand over
   Both parties sign before the vehicle is delivered.

Contract Hire FAQs

Do I own the vehicle at the end of contract hire?

No. You return it at the end. If you want to own it, a hire purchase or similar agreement is different.

What happens if I go over the mileage?

You pay the excess mileage charge set in the agreement for each extra mile.

Can I end a contract hire agreement early?

Usually, yes, but you may have to pay an early termination charge. Your agreement sets out how it is worked out.

Create a Verified Contract Hire Agreement

Hire out vehicles on clear terms. Related documents: Equipment Hire Agreement, Vehicle Sales Receipt, Lease Agreement and Personal Guarantee.