Monthly Costs Are Minimised

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 of personal car leasing 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.
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How Does Car Leasing Work?

Leasing a car means that you get to drive a new car, but you’re not buying it. Think of it like hiring a car, but for longer, usually 2 or 3 years.

So how much do you pay? Well you pay an amount to start with (just after you take delivery), then a lower amount each month. Then at the end you just hand the car back. It’s as simple as that.

The payments you make cover the cost of the car and the car tax. And you can choose to pay a bit more to cover servicing, new tyres, breakdown cover etc. Then all you need to pay for on top of that is the car insurance and fuel.

The amount you pay to start with is usually about the same as either 3, 6 or 9 of the monthly payments. You can choose how much to pay up front. The more you pay the less is the monthly payment.

There’s nothing to pay if you just want to take a look or to make an application. And the only payment before delivery is a Documentation Fee of £249 + vat.

Let’s take an example.

Sophie wants a new car. She looks on the website and chooses a car she likes. It costs £115.00 per month. She decides she’d prefer to cover the cost of servicing (we call it maintenance because it includes tyres etc.) rather than have any surprises through the year. So now the payments are £140.00 per month. The initial payment is equal to six monthly payments, so that makes it £840.00.

Sophie also chooses which options she wants like metallic paint.

She completes the application form on line. This asks for her name and address so that we can make sure she is the right Sophie.

Then it asks for her employment details. This helps to build a picture to show she can afford the type of car she’s selected!

Then it asks for her bank details. This is so that the finance company can check she has a real bank account.

Once complete she presses send and it gets to us. We then process it with the finance company and check the availability of the car. This usually takes from between 24 to 48 hours.

The finance is approved. We tell Sophie and she confirms the order on line. Then we order the car and arrange to deliver it where and when Sophie wants it.

This typically takes two weeks, possibly more if the car is a factory order.

Then the car is delivered.

So that’s how it works. But if you have any questions, please call us on 01491 615514 between 9.00am and 5.00pm Monday to Friday, or we can arrange a call back.

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