Contract Hire

Contract Hire gives you the ability to enjoy driving a Mercedes-Benz without having to take on full ownership. With this option you lease your vehicle for a fixed period and for a fixed monthly rental. This rental includes the cost of your vehicles 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 vehicle and its projected residual value at the end of your agreement. Therefore, only a proportion of the vehicle’s value is repaid, which avoids a large initial expense and keeps monthly payments lower.

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:
  • No need for a large initial deposit.
  • 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 vehicle 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 administration charge of £25 per fine.
  • Repair and Maintenance options are also available.
  • Rentals are allowable against taxable profits (proportionally).
  • VAT is reclaimable depending on usage (proportionally).
At the end of your agreement
At the end of your agreement

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

Daimler Fleet Management
Daimler Fleet Management

Would you like a different approach to funding and managing your fleet? A partner who actively listens and welcomes your ideas? A supplier who works with you to find the best solution for your business and your drivers?


Mercedes-Benz Insurance is designed specifically to meet the exacting standards of a Mercedes-Benz Van owner. Our innovative products offer the same peace-of-mind you demand from your vehicle.