Contract Hire is an agreement to lease a new car for a set period of time at a set price. After this period the car is returned.
The variables are duration (normally 2 or 3 years), mileage (from 8,000 per annum) and initial rental (equivalent to 3, 6 or 9 monthly rentals).
You can also choose to include maintenance (that’s Servicing, repairs, parts, MOT, breakdown and our fair play tyre policy).
To enter into a contract an application form is completed and submitted. Once approved, we order the car and send you the agreement.
Once the car is delivered, rentals are paid by direct debit, rentals aren’t taken before delivery. We will guide you through the paperwork
prior to delivery and during the contract.
If you are happy with us, we will aim to repeat the process at the end of the agreement on a brand new car.
Personal Contract Hire is a contract to get a new car for a set period of time at a set price. After the set period the car is returned.
To enter into a contract an application form is completed and submitted. Once approved a deposit is paid and the car delivered.
During the contract a monthly payment is made. At the end of the contract the car is returned.
The cost of the contract and the amount paid each month is based on the value of the car when it is new and it's expected value at the end of the contract.
The value at the end of the contract is based on the expected annual mileage and expected condition of the car.
Read more of the details of the contract here...
- Part of the agreement is on the annual mileage per year. If during the contract you find you are doing more than the expected mileage
it is best to let us know and then we can do one of two options. We can reset the amount paid each month to reflect the mileage or
there will be an amount to pay at the end of the contract based on a mileage fee. This is typically 9 or 10p per mile for every mile over the agreed contract.
- At the end of the contact the vehicle is inspected and if any damage is found there may be a charge for this.
- Prices quoted include VAT.
Personal contract hire agreement is the most common form of private car leasing. In this process you make monthly payments to a leasing
company over a fixed period in order to drive a car. The car is never yours – effectively you are hiring the vehicle, but over a longer
period and therefore at a cheaper rate than a traditional hire car. At the end of the term you simply hand the car back to the leasing company
and walk away – or you could choose to take out another lease.
You will benefit from our purchasing power and competitive rates of interest.
There are some restrictions that accompany this form of private car leasing. For example, a leasing company will usually set a mileage
restriction which you cannot exceed or else you could be penalised. This is because the leasing company uses this mileage limit to estimate
the vehicle’s worth at the end of the contractual period – and therefore this establishes your monthly payments.
The benefits are as follows:
- Low initial payment typically equal to three monthly payments.
- Monthly costs are minimised due to our discounted buying power and because we can reclaim the VAT on the purchase, this is reflected in your payments.
- A maintenance inclusive arrangement eliminates all risks and costs associated with maintaining a car.
- Your monthly costs are fixed, all you have to add is fuel and insurance.
- Provides you with known costs through the medium term which facilitates enhanced cash flow management.
- The absence of substantial capital investment enables you to better utilise your savings and credit lines.