In contract hire, what happens at the end of the term?

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Multiple Choice

In contract hire, what happens at the end of the term?

Contract hire keeps ownership with the finance company, so at the end of the term you simply return the vehicle. You’ve paid to use it for the fixed period, and you’ll be checked for wear and tear and mileage; charges can apply for excess wear or mileage. There’s usually no automatic option to buy the car, unlike some other finance arrangements. If you want another vehicle, you’d arrange a new contract hire or a different form of finance.

Contract hire keeps ownership with the finance company, so at the end of the term you simply return the vehicle. You’ve paid to use it for the fixed period, and you’ll be checked for wear and tear and mileage; charges can apply for excess wear or mileage. There’s usually no automatic option to buy the car, unlike some other finance arrangements. If you want another vehicle, you’d arrange a new contract hire or a different form of finance.

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