The P11D price is the basic cost of the vehicle, plus the basic cost of any options plus the delivery charge plus VAT. The cost does not include Road Fund Licence or First Registration Fee. The price is used as part of the formula to calculate Benefit In Kind Tax.
Excess Mileage is the mileage that you do over the agreed contract. Hence if you sign up to do 3 years 45k total mileage contract and you do 52k in the 3 years you will be charged for the extra 7k mileage. The amount you will be charged is based on a pence per mile figure which may vary from 4p to 25p per mile and is dependent on the vehicle you drive.
Fair Wear and Tear covers the condition of vehicles when returned at the end of a contract. It is normal that the hiring company allow for a certain amount of wear and tear during a contract and will only charge if the vehicle is returned with damage above and beyond what is normally expected. For further guidance the BVRLA publish guides on this.
Contract Hire is one way to finance your vehicle which sometimes is described as “hassle free” in the sense that almost everything is done for you from purchasing the vehicle, taxing it, maintaining it (Should you choose this option), and finally selling the vehicle. The only thing that you need to cover is insuring the vehicle and pay the monthly rental.
In financial terms the big benefit is that it is single monthly charge against your profit and loss and at the moment is an off balance sheet item, however this is under review at the moment.
If you take out any form of finance on a vehicle the vehicle is owned by the finance company until such time as the finance is paid off at which time the V5 will be changed into your name, dependent on the type of contract you have signed.