Contract Hire With Maintenance: Is It Worth It?
What it is in plain English
A maintenance package on a contract hire agreement typically covers the essential servicing, mechanical repairs, and routine wear-and-tear items required to keep your van safely on the road throughout your lease. By paying a set monthly fee, you shift the financial risk of unexpected repair bills to the leasing company, ensuring your fleet remains operational without unpredictable costs.
How it works step by step
When you choose to include a maintenance package, your monthly payment increases to reflect the added service. During the contract term, whenever your vehicle is due for a scheduled service or requires replacement parts like tyres or brake pads, you simply book the work with an approved repairer. The leasing provider settles the invoice directly, meaning you avoid upfront costs and complex claims processes entirely.
What you pay and what is included
You pay a fixed monthly amount alongside your standard lease rental. This package generally encompasses full manufacturer-recommended servicing, replacement of essential wear-and-tear components such as bulbs, batteries, and exhausts, plus tyre replacement if they fall below legal tread limits. It essentially provides a safety net for almost every mechanical aspect of the vehicle, excluding accidental damage, abuse, or driver-related negligence.
Who it suits and who it does not
This option is ideal for small business owners who prefer predictable monthly overheads and lack the time to manage van maintenance personally. It suits those with high-mileage drivers who want to ensure vehicles stay compliant and well-maintained. Conversely, it is less beneficial for those who have internal fleet management systems or prefer to pay-as-you-go for repairs, as the package includes a premium to cover the provider's administration and risk.
Questions to ask before you sign
Always clarify whether the agreement covers mobile tyre fitting or if you must visit a specific depot, as this impacts vehicle downtime. Ask if the package includes a relief vehicle if your van is off the road for an extended repair period. Finally, confirm exactly which items are excluded to ensure you fully understand your ongoing responsibilities regarding daily van checks and fluids.
FAQs
What does a maintenance package on a contract hire agreement usually cover? It typically covers scheduled servicing, replacement tyres, brake pads, bulbs, batteries, and mechanical wear-and-tear repairs, but it does not cover accident damage, misfuelling, or neglect.
Is routine maintenance included in a standard contract hire deal? No, standard contract hire agreements cover only the use of the vehicle. Maintenance is an optional 'add-on' that you must choose to include for an extra monthly fee.
Does a maintenance package include the cost of insurance? No, insurance is separate from maintenance. You remain responsible for arranging your own commercial vehicle insurance policy for the duration of the contract.
Can I add maintenance to my contract at a later date? Most providers require you to select the maintenance package at the start of your contract. It is rarely possible to add it mid-term, so it is best to decide before signing your agreement.
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