Personal Contract Hire
Personal Contract Hire is available to private individuals or Sole
Traders, Partnerships and Ltd Companies who do not wish the vehicle
to be paid from the company. It is taking over popularity from the
traditional Hire Purchase method of vehicle finance. Company car
drivers use this method to opt out of their company car scheme. It
is hassle free, with a fixed budgeted motoring plan.
The initial payment, term, mileage and maintenance package (if
required) can all be tailored to suit your needs. This method of
finance is not recommended if you anticipate terminating the
contract early.
An initial payment is made (usually equivalent to 3 monthly payments
instead of your usual 10%/20% deposit) followed by a monthly payment
up to the agreed term. At the end of the contract the vehicle is
simply collected from your designated UK mainland address.
If you like the vehicle and want to keep it under this type of
financial agreement you cannot buy the vehicle. It has to be bought
by a third party (I.e. your partner, a friend, a family member) not
associated with the name on the financial agreement
Key Points to Remember:-
- 1. Road Fund Licence is included for the duration of the
contract agreement.
-
The contract is agreed from the start to suit your requirements therefore
making budget planning easier. If taking the maintenance option
you don’t have to worry about the cost when you car needs
servicing, etc.
- 3. You don’t have to worry about depreciation or part
exchange hassles as the vehicle is simply collected at the end
of the contract.
- 4. High early termination cost (dependant on how many
monthly payments are left).
- 5. An inspection is conducted on collection, if your have
exceed your mileage or there is any damage (under BVRLA fair
wear and tear conditions) you will have to pay for it.