Contract Hire | Smart at Mercedes-Benz Retail Group

Contract Hire

Contract Hire gives you the ability to enjoy driving a smart without having to take on full ownership. With this option you lease your car for a fixed period and for a fixed monthly rental. This rental includes the cost of the Road Fund Licence for the duration of your agreement.

How Contract Hire works

At the start of your agreement you pay an advance rental upfront. Your monthly rentals are based on the difference between the initial value of the car and its projected residual value at the end of your agreement. Therefore, only a proportion of the car’s value is repaid, which keeps monthly payments lower, as you aren't funding the full price of the car.

With a Contract Hire agreement, you can choose from our ‘No Maintenance’, ‘Service Only’, ‘Full Maintenance’ or ‘Full Maintenance with Tyres’ options. This means the costs are fixed over the term of the agreement allowing you to easily manage your budget and reduce any unexpected costs.

Contract Hire features include:

  • Pay an advance rental upfront.
  • Fixed regular monthly rentals (that include VAT) means you can easily budget.
  • Payments include the cost of the Road Fund Licence.
  • Rentals are based on your annual mileage agreed at the start of your agreement.
  • We manage the car taxation process on your behalf, as well as sending MOT reminders.
  • We will also administer any speeding and parking fines when necessary. Please note there is an administration charge of £25 per fine.
  • Repair and Maintenance options are also available.

Additional features for businesses:

  • Rentals are allowable against taxable profits (proportionally).
  • VAT is reclaimable depending on usage (proportionally).

At the end of your agreement

Simply return your car with nothing more to pay, subject to it being in line with our Vehicle Return Standards as the cars condition, excess mileage and other charges may be payable.