What Is Contract Hire
For some buying car is the only option, you hand over your money and you have full ownership of your chosen vehicle in return. However for others, especially business owners owning something that has terrible depreciation and using money to buy a car that can be used for better purposes that can create money, leasing a car is a great option.
As far as leasing is concerned, contract hire is probably the easiest option to understand. In short you pay a set monthly premium and as long as you drive within the mileage agreed, you should be able just to hand the car back at the end of the contract hire agreement term. You do not get the option to buy the car and the premiums are based on the initial price of the car and the resalable value at the end of the contract hire term.
Of course there are other things to consider, like maintenance and ensuring you never go over the agreed mileage you say you will do, or you could be charged excessively for this accident, but generally contract hire for cars is like leasing a house for a period of time.
Pay your money and hand it back. This can make it easy to calculate your monthly outgoings, for some businesses that can claim VAT back on some of the value and all of the VAT of any maintenance associated with the car. Your contract hire premium is also based on the difference between buying and selling so it is possible to have a better low depreciation car than a high depreciating vehicle at a cheaper price.