Funding Methods - Contract Hire

Disadvantages:

Ø Perceived inflexibility: because costs are incurred for early termination due to the vehicle's depreciation, condition and excess mileages, but these are similar to any other form of acquisition.

Ø Not suitable for fleets with unpredictable mileage patterns, although excess mileage pooling can spread the variance.

Ø Generally no gain on sale - but no loss either, although risk-sharing deals may be available for larger fleets.