Vehicle contract provide an excellent opportunity for the working class people to drive their dream cars. It is not possible for every individual to pay the price of a vehicle upfront. Vehicle contract allow people to take vehicles on operational lease during the lifetime of the vehicle. With a vehicle contract hire a person is required to pay an equal amount every month for the using the vehicle he has chosen. The cost per month is indirectly related to the rate o depreciation the vehicle would suffer over its estimated useful life and the period of the contract.

Depending on the vehicle make and its known condition after continued use for a long time the company may charge high or less equated monthly installments. The monthly installments may include the cost of servicing, maintenance, taxes or other duties payable by the owner otherwise. The vehicle on the expiry of the contract has to be returned to the vehicle contract hire vendor. The contract will be drawn based on a rough estimation of the number of miles the vehicles is estimated to travel in a year. Where the actual miles travelled exceed the agreed number of miles, an additional charge per mile have to be paid at a stipulated rate as per the contract.

Here is free vehicle contract template for you

vehicle contract template

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