Personal Contact Hire
Thank you for considering Personal Contract Hire (PCH).
Personal contract hire provides the convenience of the use of a vehicle, for a fixed monthly rental.
Personal Contract Hire - Suitability Explanation
PCH is a fixed term and mileage-based agreement, and it is important that your agreement reflects your predicted annual mileage. If you exceed your mileage, you will be charged an excess mileage charge.
PCH is a contract hire agreement suitable for selected vehicles. The vehicle will not belong to you at any point in the agreement and so you cannot sell the vehicle.
With PCH you will pay an agreed number of fixed monthly rentals plus VAT at the prevailing rate for the specific period of hire you have chosen. At the end of the agreement the vehicle must be returned to the finance company.
Benefits of PCH
Fixed monthly rental payments
Choice of period of hire from 2 years and a total mileage up to 120,000 miles (maximum 40,000) per annum
Road Fund Licence is included for the duration of the agreement, though charges may apply reflecting future increases
Roadside Assistance provided by the manufacturer subject to their Terms and Conditions.
The vehicle is simply returned at the end of agreement, removing concerns about disposal values and depreciation (subject to final inspection)
Budgeting - PCH offers fixed monthly rentals that can include additional services, such as maintenance, meaning that there will be no cash flow fluctuations.
Potential Downsides of PCH
If you wish to own or buy the vehicle
If you might need to change your vehicle early (early settlement will incur charges)
If you would like to shorten your period of hire by pre-paying
If you do not know what your predicted mileage will be
Business type restrictions, e.g. our funders do not allow the vehicles to be used as taxis for example.
If you plan to export the vehicle or use abroad for extended periods
Change of Circumstances - Some finance providers do not provide the option to alter the agreement once it has been setup. For example, if you change job during the lease contract and the new commute to work means that you go over your mileage allowance you may be liable for an excess mileage charge at the end of the agreement. If you are concerned about, we can check the terms of the finance provider in question to see if they allow mid contract amendments.
Please also consider any potentinal change of circumstances that may affect your ability to pay.
Potential Damage Recharge - When the vehicle is collected at the end of the agreement it will be assessed on behalf of the finance company against the BVRLA's fair, wear and tear policy. This policy aims to identify any damage that is not deemed as fair for the age and mileage of the vehicle. Finance companies are bound by the BVRLA's (trade body) guidelines when assessing damage but issues such as damaged alloy wheels or a deep scratch on the paint work could result in a charge to return the vehicle to the expected standard.
Early Termination - If you need to exit the agreement before the end of the contract there is likely to be an early termination charge that will be payable.
Maintenance
Non-Maintained. These contracts include delivery to a mainland UK address, road fund licence throughout the contract** collection at the end of the contract. The vehicles are brand new ** and come with manufacturer’s warranty and roadside assistance (according to the manufacturer)
(** Unless otherwise stated)
Maintained. In addition to all the above the maintained contracts include servicing, roadside assistance through the contract and replacement tyres (fair wear policy on tyres)
Frequently asked questions
Do I own the car?
You will never own the vehicle, the funder will.
I do a different mileage to your website pricing.
We can provide be-spoke quotations in increments of 1,000. The total mileage can vary from funder to funder, but we are happy to discuss this with you.
Do I have to collect the vehicle?
Vehicles are delivered to your home or office address for mainland UK.
What happens at the end of the contract?
The car is returned to the funder, and you can apply for a new lease if you wish. We are often able to deliver a new vehicle either on the same day your existing vehicle is due to be collected or on your preferred date.
Depending on your contact, you may be able to extend your contact, or sometimes purchase via a 3rd party, depending on your funder. For current customers we are able to provide assistance with your end of contract such as fact sheets and providing access to the BVRLA fair wear & tear guide, giving full details of return standards.
Do I need to have a MOT?
All cars must have a MOT once they reach three years. If you have the vehicle when an MOT is due, you will need to have one. A maintenance contact will include MOT, if you have a non-maintained contact, you will need to pay for the MOT to be carried out and any costs incurred.
Is the vehicle taxed?
Car tax is included for the contract length.
Is insurance covered?
No, you will need to arrange fully comprehensive cover.
Will service and maintenance be covered?
All our PDF quotes will show non-maintained and maintained prices. Prices will depend on the model, length of contact and mileage. If you don’t add the funders maintenance, you will need to service the vehicle under Manufacturer Guidelines.
If you have any questions, please call a sales representative on 01527 524 418