Asset finance
Contract hire Ireland: use the vehicle, hand it back
Contract hire is a long-term rental of a company car, van or truck for a fixed monthly payment, often with maintenance included, where the vehicle goes back to the leasing company at the end.
- How long
- Usually 2 to 5 years
- Depends on the lender and the deal
- How fast
- Around 2 to 3 weeks
- Typical; never guaranteed
- Our fee
- €0 to you
- The lender pays us commission
Quick eligibility check
Looking at contract hire? Tell us what your company needs
Step 1 of 3 · about 60 seconds
About 60 seconds · no credit search · not recorded on the Central Credit Register
Prefer to talk? +353 1 536 9910- How long
- Usually 2 to 5 years
- Depends on the lender and the deal
- How fast
- Around 2 to 3 weeks
- Typical; never guaranteed
- Our fee
- €0 to you
- The lender pays us commission
- Irish limited companies
- Several lenders, one request
- No fees for your company
- No obligation
At a glance
Contract hire at a glance
around 2 to 3 weeks
- Irish limited companies
- Often 12+ months trading
- The asset
- 1
Tell us what you need
Three taps: purpose, amount, business type. About 60 seconds, no credit search and not recorded on the Central Credit Register.
- 2
We match you to lenders
We check your profile against lender criteria and approach only those likely to consider it. One request, only to lenders likely to consider it.
- 3
Compare any offers
See the rate, fees, security and any personal guarantee side by side before you decide anything.
Lenders we work with
We are a broker, not a lender. Lender names and logos are trademarks of their owners and are shown with permission. Their inclusion does not mean the lender endorses Welcome Finance. Finance is subject to each lender’s own approval, which is not guaranteed.
About contract hire
Contract hire, also called an operating lease or full-service lease, lets your limited company use vehicles without buying them. The leasing company buys the vehicle, your company pays a fixed monthly rental for an agreed term and mileage, and you hand it back at the end in good condition. The leasing company carries the risk of what the vehicle is worth at the end. Many contracts include servicing, maintenance, tyres, road tax and roadside assistance. If you go over the agreed mileage, or the vehicle comes back with more than fair wear and tear, expect extra charges. In Ireland, Ayvens offers business leases of 2 to 5 years for cars and light commercial vehicles, plus a flexible lease from one month and sale and leaseback of existing fleets. Drivalia Lease Ireland provides contract hire for Volvo Car leasing, Enterprise Flex-E-Rent offers contract hire on vans, trucks and tractor units, and Finance Ireland lists contract hire for vehicles.
Tax and accounts differ from buying. Most companies cannot reclaim VAT on hiring a passenger car, although Revenue allows 20% of the VAT on a qualifying car's monthly charge where it emits under 140g/km of CO2 (for cars first registered from 2021) and has at least 60% business use. VAT on van and truck rentals is generally deductible. Revenue restricts the tax deduction for car lease payments by reference to the car's price and CO2 emissions, while vans and trucks are not restricted. BIK still applies to a leased company car used privately, and a van is taxed at 8% of its value. Under FRS 102 as amended for periods beginning on or after 1 January 2026, most leases appear on the balance sheet, so ask your accountant. To own the vehicle instead, see van finance, business car finance or truck, HGV and fleet finance; for other equipment see equipment leasing. Contract hire is for limited companies only, not personal car leasing. Tell us what your company needs and we'll tell you honestly whether a lender we work with can help, or where to look instead.
What it’s used for
- Company cars for directors and staff
- Vans for trades, deliveries and service work
- Trucks and tractor units on fixed-price contracts
- Moving a fleet to electric vehicles without buying them
Who it’s for
- Companies that want fixed running costs for company cars
- Trades and service companies running van fleets
- Haulage and distribution companies needing trucks without buying them
- Companies that replace vehicles every few years
No credit search · not recorded on the Central Credit Register · about 60 seconds
Contract hire calculator
Estimated monthly rental (ex VAT)
€1,795.69
- VAT per rental (23%)
- €413.01
- Paid at the start (3 rentals, ex VAT)
- €5,387
- Total rentals (ex VAT)
- €86,193
Profile: 3 + 45. With a lease the lender owns the equipment; VAT is charged on each rental rather than up front.
Check eligibility for this amountIllustrative only. Actual rates, fees and terms depend on your circumstances and the lender. This is not an offer of finance.
How contract hire works
- 1
Choose the vehicle
Agree the make, model, term and annual mileage.
- 2
Credit check
The leasing company assesses your company and sets the rental.
- 3
Fixed rentals
Your company pays a monthly rental, with maintenance if chosen.
- 4
Hand back
Return the vehicle at the end, or extend or replace it.
Types of contract hire
Contract hire with maintenance
A full-service lease: servicing, repairs, tyres and road tax are in the monthly rental, so running costs are fixed.
Contract hire without maintenance
A lower rental where your company pays for servicing and repairs itself. You still return the vehicle at the end.
Flexible short-term lease
Shorter, cancellable contracts. Ayvens Flex, for example, runs from one month with no early termination fees.
Fleet sale and leaseback
The leasing company buys vehicles your company already owns and leases them back, releasing cash.
Typical eligibility
Every lender sets its own criteria. These are common starting points. We’ll tell you which lenders are likely to consider your business.
- Irish limited company (LTD, DAC, PLC or ULC)
- Accounts and bank statements that support the rentals
- A realistic estimate of annual mileage
- Not for personal or consumer car leasing
What you’ll usually need
- Latest filed accounts and management accounts
- Business bank statements
- Vehicle choice, term and mileage required
- Company documents and director ID
Advantages
- Fixed monthly costs, often with maintenance
- No risk on the vehicle's value at the end
- VAT generally deductible on van and truck rentals
Things to consider
- You never own the vehicle
- Excess mileage and damage charges
- Ending early can be costly on a standard contract
Rates, fees and costs
The monthly rental depends on the vehicle's price, the term, the mileage, the services included and the value the leasing company expects at the end. Ask what excess mileage costs per kilometre, how damage is assessed at return, what an early end costs and whether tyres or other services are extra. Compare the total of all rentals with buying on hire purchase, after VAT and tax, with your accountant.
We are paid commission by the lender when finance completes. We do not charge your company a fee and never ask for payment upfront.
Example (for illustration only): a company takes a van on contract hire for 4 years, with an agreed mileage and servicing included. If a leasing company’s offer showed 48 monthly rentals of €550, the rentals would total €26,400. Going over the mileage, or damage beyond normal wear, would cost extra, and the van goes back at the end. The real cost depends on the offer, and finance is subject to status and the provider’s approval.
Your company must pay the rentals for the full term even if it no longer needs the vehicle, unless the contract allows an early end. Extra mileage or damage can add charges at the end.
Finance is subject to status and the lender’s approval. Welcome Finance is a commercial finance broker, not a lender. We arrange finance for limited companies for business purposes only; this is not regulated by the Central Bank of Ireland.
Compare contract hire with alternatives
Not sure this is the right fit? Here’s how it compares with the options businesses most often weigh it against.
Contract hire
This page- Amount
- Varies
- Term
- Usually 2 to 5 years
- Typical speed
- Depends on credit checks and vehicle supply; not guaranteed
- Security
- The asset
- Typical min. trading
- 12 months
- Amount
- Varies
- Term
- Usually 3 to 5 years
- Typical speed
- Usually within days; not guaranteed
- Security
- The asset
- Typical min. trading
- 12 months
- Amount
- Varies
- Term
- Usually up to 5 years
- Typical speed
- Some lenders decide within days; not guaranteed
- Security
- The asset
- Typical min. trading
- 12 months
- Amount
- Varies
- Term
- Usually up to 5 years
- Typical speed
- Some lenders decide within days; not guaranteed
- Security
- The asset
- Typical min. trading
- 12 months
- Amount
- Varies
- Term
- Usually up to 5 years
- Typical speed
- Usually within days; not guaranteed
- Security
- The asset
- Typical min. trading
- 12 months
| Detail | This page Contract hire | Equipment leasing | Van finance | Business car finance | Truck, HGV and fleet finance |
|---|---|---|---|---|---|
| Amount | Varies | Varies | Varies | Varies | Varies |
| Term | Usually 2 to 5 years | Usually 3 to 5 years | Usually up to 5 years | Usually up to 5 years | Usually up to 5 years |
| Typical speed | Depends on credit checks and vehicle supply; not guaranteed | Usually within days; not guaranteed | Some lenders decide within days; not guaranteed | Some lenders decide within days; not guaranteed | Usually within days; not guaranteed |
| Security | The asset | The asset | The asset | The asset | The asset |
| Typical min. trading | 12 months | 12 months | 12 months | 12 months | 12 months |
How we work
Contract hire: frequently asked questions
What is contract hire?
Contract hire is a long-term rental of a vehicle for a fixed monthly payment over an agreed term and mileage. The leasing company owns the vehicle and takes the risk on its value at the end, and many contracts include servicing, maintenance, tyres and road tax. Your company returns the vehicle at the end, then extends, replaces it with a new one or walks away.
What is the difference between contract hire and hire purchase?
With hire purchase, your company pays off the vehicle and owns it after the last payment, so it carries the risk on its resale value and pays for maintenance. With contract hire, your company never owns the vehicle, hands it back at the end and often has maintenance included. Hire purchase suits vehicles you keep for years; contract hire suits fleets replaced every few years.
What happens if we go over the mileage limit?
Most contracts charge for each extra kilometre above the agreed mileage, and Ayvens, for example, says additional charges may apply if you exceed it. The rental is priced on the mileage you choose, so set a realistic figure at the start. Review your drivers' real mileage before you sign, as excess charges add up quickly across a fleet.
Can my company reclaim VAT on contract hire?
On vans and trucks, VAT on the rentals is generally deductible for a VAT-registered company. On passenger cars it is usually not, except that Revenue allows 20% of the VAT on the monthly charge for a qualifying car, which for cars first registered from 2021 means CO2 under 140g/km, with at least 60% business use. Check the details with your accountant.
Does BIK apply to a leased company car?
Yes. Benefit in kind applies when an employee or director can use a company car privately, whether the company owns it or leases it. Revenue works out BIK on a car as a percentage of its original market value, based on its CO2 category and business kilometres. For vans, BIK is 8% of the van’s original market value. Revenue sets temporary reductions, so check the current figures with your accountant.
How does contract hire show in our accounts?
It depends on your accounting framework. Under FRS 102, as amended for accounting periods beginning on or after 1 January 2026, lessees recognise most leases on the balance sheet as a right-of-use asset and a lease liability, with exemptions for short leases and low-value assets. The rental charge in the profit and loss account is replaced by depreciation and interest. Ask your accountant how it applies to you.
What happens at the end of a contract hire agreement?
Your company returns the vehicle, and the leasing company inspects it for mileage and damage beyond fair wear and tear. You can usually take a new vehicle on a fresh contract, and some leasing companies offer an extension or a flexible contract instead. With contract hire you do not own the vehicle at the end, unlike hire purchase. Ask about return standards before you sign.
Can we get vans and trucks on contract hire?
Yes. Leasing companies offer contract hire on light commercial vehicles as well as cars, and some also cover trucks. Enterprise Flex-E-Rent, for example, offers contract hire on vans, trucks and tractor units, with service, maintenance and repair included, for a fixed price over a pre-agreed period. For vans and trucks your company wants to own, see van finance or truck, HGV and fleet finance.
Can Welcome Finance arrange contract hire?
Leasing companies such as those named on this page deal with companies directly, and many dealers have leasing partners. Tell us what your company needs and we'll tell you honestly whether a lender we work with can help, or where to look instead.
Check in 60 seconds
Looking at contract hire? Tell us what your company needs
Contract hire is for limited companies only, not personal car leasing. Tell us what your company needs and we'll tell you honestly whether a lender we work with can help, or where to look instead.
- No credit search, not recorded on the Central Credit Register
- One request, several lenders: we’re a broker, not a lender
- For limited companies registered in Ireland
- No fees for your company: we’re paid commission by the lender
Step 1 of 3 · about 60 seconds
Sources: Business lease, Ayvens Ireland (checked 23 Oct 2026); Leasing solutions, Ayvens Ireland (checked 23 Oct 2026); How to lease a car, Ayvens Ireland (checked 23 Oct 2026); Fleet financing solutions, Ayvens Ireland (checked 23 Oct 2026); Volvo Car Business Leasing (Drivalia Lease Ireland Limited), Volvo Cars Ireland (checked 23 Oct 2026); Flex-E-Rent contract hire, Enterprise Rent-A-Car Ireland (checked 23 Oct 2026); Machinery and Equipment Finance, Finance Ireland (checked 23 Oct 2026); Tax and Duty Manual: Partial recovery of VAT on qualifying passenger motor vehicles, Revenue (checked 23 Oct 2026); Tax and Duty Manual: Recovery of VAT on motor vehicles, Revenue (checked 23 Oct 2026); Tax and Duty Manual Part 11-00-01: Cars, capital allowances and lease hire payments, Revenue (checked 23 Oct 2026); Tax and Duty Manual Part 05-01-01b: Benefit in kind on the provision of cars and vans, Revenue (checked 23 Oct 2026); FRS 102 Explainer: Periodic Review 2024 changes for financial statements users, Financial Reporting Council (checked 23 Oct 2026); FRC revises UK and Ireland accounting standards, Financial Reporting Council (checked 23 Oct 2026).