The Complete Guide to Contract Hire for Vans

Why This Guide Matters

Let’s face it: choosing how to get your next van is about as much fun as a motorway service station sausage roll. The options are confusing, the jargon’s thicker than a builder’s sandwich, and one wrong move could leave you stuck with payments longer than your last holiday romance. That’s why you need a straight-talking, no-nonsense guide to contract hire for vans—a subject that, let’s be honest, most finance companies make about as exciting as a spreadsheet convention. Whether you’re a sole trader, a small business, or just someone who thinks a van should do more than just carry sandwiches and old paint tins, this guide is your shortcut to understanding if contract hire is the route you should be taking.

The Basics Explained

So, what is contract hire for vans? In plain English, it’s like renting a van but with more paperwork and less chance of being charged for returning it with a boot full of sand. You pick a van, agree how long you want it for (usually between two and five years), estimate your annual mileage, and pay a fixed monthly amount. At the end? Hand the keys back, walk away, and start eyeing up your next four-wheeled workhorse.

Here’s the beauty: the van isn’t yours. You don’t need to worry about depreciation, resale values, or haggling with tyre-kickers in supermarket car parks. You’re essentially paying for the privilege of having a shiny, reliable van on your driveway, with predictable costs and minimal faff. Most contract hire deals even bundle in road tax and breakdown cover. Maintenance can often be chucked in for a bit extra—a real bonus if you’d rather be delivering parcels than wrestling with oil changes in the rain.

How It Affects You

Alright, enough theory—what does contract hire actually mean for you, the person who just wants a van that starts every morning and doesn’t bankrupt you?

Budgeting made easy: Your monthly payments are fixed, so you’re shielded from nasty surprises. No sudden repair bills or painful depreciation hits.

No resale stress: Forget fiddling with classified ads or listening to Derek from down the road explain why your van’s worth half what you think. Hand it back and move on.

Image upgrade: Newer vans mean fewer breakdowns, lower emissions, and you look less like you’re moonlighting as Del Boy.

Mileage matters: Go over your agreed mileage and you’ll pay for the privilege—think of it as a posh parking fine.

Wear and tear: Treat the van like a demolition derby car, and you’ll get stung for excess damage. Keep it tidy, and all’s well.

The upshot? Contract hire is great if you crave predictability, can estimate your mileage sensibly, and don’t want the hassle of flogging a used van. If you’re prone to changing your mind more often than your socks, or rack up mileage that would make a lorry driver blush, you might want to read on.

Our Approach

At Kandoo, we don’t believe in one-size-fits-all solutions. We know vans are the backbone of Britain—delivering everything from Amazon parcels to Auntie Mabel’s birthday cake. Our job is to match you with the best contract hire deal, not just the one with the biggest advertising budget.

How do we do it? Simple:

• We compare the market: We’re not tied to any one lender or van provider, so we sniff out deals like a bloodhound in a sausage factory.
• We speak your language: No baffling finance jargon, just clear, honest advice. If it sounds too good to be true, we’ll say so.
• We look at the bigger picture: Need maintenance? Insurance? We help you weigh up what’s worth adding and what’s just a shiny extra.
• Personalised recommendations: Your business isn’t the same as the bloke next door’s. We’ll ask the right questions to find a deal that fits your mileage, usage, and budget—whether you’re delivering cupcakes or kitchen sinks.

Our philosophy is simple: You should be confident in your choice, not confused by it. With Kandoo, you get a broker who works for you, not the finance companies. We’ll lay out the facts, highlight the pitfalls, and arm you with more negotiating power than a car boot sale pro.

Before You Decide

Thinking of jumping in? Hold your horses. There are a few things you need to check before you sign on the dotted line:
• Mileage limits: Are they realistic for your business? If you’re regularly criss-crossing the country, those excess mileage charges add up faster than you think.
• Condition clauses: Understand what counts as ‘fair wear and tear’—and what’ll cost you your deposit.
• Early exit fees: Planning to expand, downsize, or retire to Spain? Make sure you know what it’ll cost if you want out early.
• Insurance: Most contract hire deals require fully comprehensive insurance. Don’t get caught out.
• Maintenance: Is it included? If not, have you budgeted for those inevitable MOTs and services?

Pro tip: Always read the fine print. If a deal sounds like a ticket to Easy Street, check for hidden potholes.

What’s Real, What’s Hype

Let’s separate the turbocharged truths from the marketing hot air.

Real:

• Predictable monthly costs
• No selling hassle at the end
• Access to brand new vans

Hype:

• "Zero risk": You’re still responsible for damage, excess mileage, and insurance.
• "Cheaper than buying": Sometimes, yes. But not always—especially if you clock up big miles or like to keep your vans for decades.

Bottom line? Contract hire is a tool, not a magic wand. Brilliant for some, pointless for others. Don’t fall for the showroom sizzle—dig into the details.

Pros & Cons

Pros:
• Fixed monthly payments
• No depreciation worries
• Easy to upgrade to new models
• Tax-deductible for many businesses

Cons:

• You’ll never own the van
• Mileage and condition limits apply
• Early termination can be costly
• Modifications are usually a no-go

Factor	Contract Hire	Buying Outright
Ownership	No	Yes
Upfront Cost	Low	High
Flexibility	Medium	High
Resale Hassle	None	Yep

Other Options to Consider

Not sold on contract hire? Fair enough. Here are some alternatives:
• Finance Lease: Like contract hire, but with more flexibility at the end. You sell the van and keep a share of the sale price.
• Hire Purchase (HP): Pay monthly, own the van at the end. Higher monthly payments, but it’s all yours.
• Personal Contract Purchase (PCP): Less common for vans, but works like HP with a balloon payment at the end if you want to own it.
• Buying Outright: No monthly payments, but you need a hefty chunk of cash up front—and all the risk is yours.
• Rental/Short Term Hire: Need a van for a week or two? Skip the contracts and go for a simple rental.

Each option has its fans—and its pitfalls. The right choice depends on your business, your cash flow, and your appetite for risk.

FAQs

Can I use a contract hire van for anything I want? Not quite. The contract usually restricts commercial use types, overseas travel, and modifications. Always check the small print.

What happens if I crash my van? You’ll need to repair it and claim through your insurance—contract hire doesn’t cover accidental damage.

Can I end my contract early? Yes, but it’ll cost you. Early termination fees can be steep, so only sign up for the term you’re confident you’ll need.

What does ‘fair wear and tear’ actually mean? Minor marks and general use are fine. Big dents, ripped seats, or missing parts? Expect to pay.

Is maintenance always included? No, but many plans offer it as an add-on. Make sure you know what you’re getting.

Is contract hire tax-efficient for my business? Often, yes. Lease payments can be tax-deductible, and you may be able to reclaim VAT—but check with your accountant.

What about insurance? You arrange your own fully comp cover. The finance company won’t let you drive off without it.

Can I buy the van at the end? Nope. You hand it back and start again. If you want to own the van, look at HP or a finance lease.

Next Steps / Call to Action

Ready to upgrade your workhorse without the financial headache? Get in touch with Kandoo today. We’ll compare the best contract hire deals for vans, explain the fine print, and help you find the perfect fit—so you can spend less time worrying about finance, and more time on the road (or at the pub, your choice).

No jargon. No nonsense. Just straight-talking support to get you (and your tools, cakes, or whatever you haul) moving.