Contract hire is one of the most popular forms of leasing, with both personal and business lease deals available. Contract hire works in a way that allows you to hire a vehicle for a certain period of time, usually 6-60 months on agreed monthly payments after a deposit has been placed. Contract hire has risen in popularity because depreciation is always a big worry for new car buyers, so with contract hire that worry is removed. You are however not the legal owner and when the agreement ends, the car must be handed back without the option of purchase. When you take out a contract hire agreement, whether it is for personal or business use, then there are certain things that must be agreed beforehand. The annual mileage must be agreed before the contract is taken out and this will alter the price depending on how many miles you travel a year. If you go over your annual allowance, then there is an extra fee per mile. The amount of deposit and the monthly payments are then agreed and fixed for the length of the contract, so they will not alter when the interests rise.