Contract hire (van contract hire and leasing) is a vehicle financing method that has maximum benefit for customers who are registered for VAT, so it is most suitable for businesses and the self-employed. If your vehicle is used exclusively for business purposes you will be pleased to find that you can reclaim 100 per cent of the VAT. Even if you use your van for some personal use you can still reclaim 50 per cent of the VAT. A contract hire agreement means that you have actually hired the selected van for an agreed period, usually between 1 and 5 years, during which time you will pay the agreed rental, based upon mileage.