Contract Hire business has become one of the most sought ancillary services in the business community. In earlier times the leasing companies were small units with one individual manager 2 or 3 vehicles. Now it has developed into a major business where private and public limited companies play an important role in personal car leasing or business car leasing. The contract period ranges from 12 months to 120 months depending upon the need of the users. The leasing companies acquire vehicles on hire purchase basis from automobile companies and pay them periodically from out of lease rent collected from the clients. Personal contract car hire also exists but the leasing companies prefer contract hire for business purposes rather than for personal use the business requirement is permanent and long term basis. After the emergence of insurance concept the leasing business has flourished like anything as a back up cover is available by way of insurance if the case of loss both to the leaser and lessee. New methods are now being implemented in the leasing business by paying only when the vehicle is put to use with a minimum guaranteed amount. The acute completion has driven the leasing companies to offer attractive terms to their clients in order to corner more business.