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Finance methods explained
Contract Hire
Contract hire is a vehicle leasing contract for sole traders, partnerships, limited companies and PLCs. The Hirer benefits by paying a single fixed rental each month. This includes road fund licence in most cases and, if required, service and maintenance. Rental periods typically vary between 18 and 48 months, there is no large initial payment to be made as deposits are usually equivalent to 3 or 6 months rental. VAT is payable on rentals but is partially reclaimable by VAT registered businesses. At the end of a contract the vehicle is returned to the lender at the agreed contract mileage with no final or balloon payment to be made. If the mileage on the vehicle at the end of the contract is higher than the contracted mileage then there will be an excess mileage charge to pay. This is typically 5p - 10p per mile. For details of Finance Lease & Contract Purchase please contact this office.
Personal Contract Hire
Personal Contract Hire (PCH) has been specifically designed for people opting out of a company car scheme or joining a new company that provides a company car allowance, instead of a company car. A PCH contract includes road fund licence and, if required, service and maintenance. Rental periods typically vary between 24 and 48 months, there is no large initial payment to be made as deposits are usually equivalent to 3 or 6 months rental. At the end of a contract the vehicle is returned to the lender at the agreed contract mileage with no final or balloon payment to be made. If the mileage on the vehicle at the end of the contract is higher than the contracted mileage then there will be an excess mileage charge to pay. This is typically 5p - 10p per mile.