Contract hire

Contract hire

1) The operation whereby an owner hires a vehicle to the customer for his exclusive use for a given period. Usually contract hire vehicles are painted in the customer’s livery and may be driven by the owner’s driver or the customer’s driver (depending on the contract terms).

Contracts invariably provide for maintenance of the vehicle by the owner and temporary replacement to cover breakdowns, etc to relieve the customer of these worries as well as saving him the capital and replacement costs for the vehicle – the essence of contract hire.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.49 (288 p.)