As the name suggests Personal Contract Hire
(also known as personal leasing) is simply contract hire but for
individuals
Personal Contract Hire (PCH) is based on
a fixed term contract where customers pay an agreed monthly charge for
the use of a vehicle for a previously agreed period.
Advantages:
- Flexible initial
payment
- Fixed term
contract
- Fixed mileage
contract
- Fixed cost
motoring
- Flexible profiles to suit
you
- You only pay for the use of the
vehicle
- At the end of your contract simply hand the
vehicle back
- Option of including maintenance with
the contract
- No depreciation or disposal
risk
Disadvantages:
- Vehicle must be returned in a well
maintained condition
- Early termination can be
expensive
- You must have fully comprehensive vehicle
insurance
- You will never own the
vehicle
More Information on Personal
Contract Hire:
It benefits customers wishing to
eliminate the financial risk associated with disposing of a vehicle.
Contracts are usually taken over two, three or four years, providing a
high level of flexibility. Some contracts can be formally extended
beyond the end of contract date if required. Just ask and we can answer
any of your questions regarding extending your contract.
PCH is very similar to business Contract Hire; both are based
on a fixed annual mileage agreed on inception of a contract. You will
need to decide how many miles you drive each year before quotations can
be obtained. Once you have stated how many miles you drive in a year and
considered which vehicle you would like to lease a quote can be created
for you by one of our sales team.
Regulations with
regard to making mileage amendments after contracts are live vary from
funder to funder, so it is always better to be as accurate as you can
be. If you do exceed the agreed allowance at the end of your contract
you will pay an excess mileage charge, which will have been agreed upon
prior to signing the finance agreement.
Please
remember this when deciding upon you annual mileage. If you are looking
to have predictable motoring costs adding maintenance to your monthly
payment is easy. Maintenance is there to put your mind at rest should
any challenges arise with your vehicle and generally covers servicing,
routine maintenance, tyres, exhausts and batteries.
Please note that it is responsibility of the person named on
the finance agreement to arrange and pay for fully comprehensive
insurance for the vehicle. It is important that the vehicle is returned
in accordance with the guidelines set out in the 'Fair Wear and Tear
Guide', a copy of which is made available to customers when they are
near the end of their PCH
agreement.