Contract Hire

Formal

A lease with lots of peripheral services wrapped around it. Common in many countries, it’s designed to give full service and use of an asset to a customer, all covered by one certain monthly or periodic rental payment. Most common for cars and trucks, use of the vehicle plus maintenance, service, rental car replacement etc.

Real-world Example

A delivery company hires a fleet of vans for 4 years under a contract hire agreement, paying a fixed monthly fee that covers maintenance and servicing, then hands the vans back at the end of the term rather than owning them.