Personal Contract Hire (PCH) is tailored to suit your personal circumstance, with predictable, regular monthly payments that cover all major costs normally associated with running a car.
With PCH you enjoy real security and peace of mind. The benefits are:
No additional fees
Significant tax advantages
Choose any make. We'll source and deliver free of charge
Enjoy a new car every two or three years
Low deposit and payments that tend to be lower than a personal car loan
Low fixed monthly payments making budget planning easier
Contract length and mileage tailored to your specific requirements
Maintenance and breakdown options available, spreading the cost
Click
here for GAP insurance and early termination insurance information
As you never technically own the vehicle, neither disposal nor depreciation are your concern
How it works:
The most common form of private car leasing, Personal Contract Hire is a long-term vehicle rental agreement for private car users.
It's becoming increasingly popular as an alternative to purchasing brand-new vehicles, especially those which might otherwise have an unreachable on-the-road cost.
You will have decided previously on the deposit you wish to pay, and the length of the contract.
We then fix an agreed future value which is guaranteed, subject to mileage and good condition, and your monthly payment is calculated accordingly.
It's very flexible and we think the cost options will pleasantly surprise you.
You are required to arrange your own fully comprehensive insurance, pay for your own fuel and keep the vehicle topped up with oil and in good condition.
Personal Contract Hire is available with or without maintenance and VAT is payable on the rental.
At the end of the agreement, simply return your vehicle to the finance company and you're free to lease or purchase a new one.
Alternatively, you may have the option to pay the remainder of the vehicle's value and then own the vehicle if the finance company agrees.
Personal Contract Hire (PCH) is right for you if:
You don’t want to own the car
You prefer to change your car frequently
You want a fixed cost of motoring to make budgeting easier
You’d like to drive a more expensive vehicle than your current budget allows
You don’t want to worry about the risks of depreciation
You’re aware that cars with poor residual values will increase your monthly payments
You’re aware of any early termination and excess mileage penalties
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Personal Contract Purchase (PCP) is is a popular choice both for private drivers and employees who opt out of a company car scheme to take the cash alternative.
The benefits are:
No hidden costs
Enjoy a new car every two or three years
Low initial deposit
Fixed interest rates for duration of contract
Fixed cost motoring for duration of contract simplifies budgeting
Reduced monthly payments due to deferred guaranteed future value (GFV or balloon payment) agreed at the start of the contract
Contract length and mileage tailored to your specific requirements
Maintenance and breakdown options available, spreading the cost
Rental, plus any maintenance package, covered by payments throughout contract
Avoids over-the-top company car tax payments
No risk of negative equity; balloon payment amount guaranteed at start of contract
Monthly payments not subject to VAT, only service costs of a maintenance package attract VAT
Click
here for GAP insurance and early termination insurance information
The chance to own the car at end of your contract, or to return it
How it works:
A PCP can be funded from your company car or mileage reclaim allowance.
You choose the car, the deposit, for how long you want the contract to run and the mileage you intend to do.
Your payments effectively cover the vehicle's estimated depreciation, and in return, you enjoy fixed-cost motoring for the term of the contract.
At the end of the contract, you have a choice either to buy the car outright for an agreed lump sum – Guaranteed Final Value (GVF) or balloon payment, or to hand the vehicle back to the lender and walk away with no further obligation.
A PCP enables you to get the brand-new car that you probably thought was beyond your reach, enjoy significant tax benefits, and combine all your motoring expenses into one affordable monthly payment.
Considerations if
Personal Contract Purchase (PCP) might be right for you:
For individuals only, businesses are not eligible for this scheme
Excess mileage costs may apply
Repair of any damage beyond fair wear and tear is recharged to you
The better the overall condition of your car, the higher the chance of your vehicle being worth more than the GFV, giving you the opportunity to recoup as much money as possible.
You receive a detailed set of terms and conditions at the beginning of your contract
When at least one-third of total amount payable has been made, the car cannot be repossessed without a court order
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