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  • Personal Contract Hire

    Fixed term contract hire for individuals.

  • As the name suggests Personal Contract Hire (also known as personal leasing) is simply contract hire but for individuals

    Personal Contract Hire (PCH), also known as personal leasing is a fixed term contract hire for individuals at an agreed monthly cost.

    Pros

    • Flexible initial payment / deposit
    • Flexible payment profiles to suit you
    • Fixed monthly payments
    • Drive a better car than with other finance options
    • No depreciation risk
    • Choose a new car every 2-5 years
    • Can add maintenance for full budgetary control
    • Option of including maintenance with the contract
    • Road fund license for duration of contract

    Cons

    • You will never own the vehicle
    • Early termination can be expensive
    • No modifications can be made
    • Potential damage and over mileage charges
  • More Information on Personal Contract Hire:

    Personal contract hire benefits customers who are wanting to eliminate the financial risk that is associated with owning and disposing of a vehicle.

    Deposit amounts / initial payments for contract hire vary from zero deposit upwards and have an effect on the monthly payments, normally displayed as 1,3,6,9 or 12 months upfront. For example, a 36-month contract advertised at 3+35 means that the deposit amount is 3 monthly payments upfront as your initial first month’s payment followed by 35 set monthly payments (for a £200 a month deal, you would pay £600 initial rental / deposit followed by 35 monthly payments of £200).

    The vehicle remains the property of the finance company for the duration of the agreement. You will be contacted by the finance company approximately 3 months prior to the end of the contract to find out what your plans are. Generally, they will then arrange an inspection and collection of the vehicle. Just like with renting a property, you will be required to pay if you damage anything (beyond normal wear and tear). You will also face additional charges should you exceed your agreed mileage allowance; this is charged at an agreed pence per mile rate and will be listed in your contract.

    The best part of leasing a vehicle is that there is no risk of depreciation to you. Leasing companies are often able to pay less for a brand-new car than individual buyers and also sometimes less than the dealerships as they buy many cars throughout the course of a year so are able to negotiate better discounts with the manufacturers. This means that these discounts are passed onto you, the customer, which means you may even be able to drive a better vehicle than you originally thought of.

    So, should you require any further information or have any questions around leasing your next vehicle then please contact us today on 01202 925853 or leasing@autoclub.co.uk

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