Personal Contract Hire (PCH) is a perfect product for an individual who wants fixed cost motoring and is confident about the mileage and condition of the vehicle over a set period of time. It is an easy and cost effective way to fund vehicles and it enables you to control one of your biggest expenses. PCH is available with or without a maintenance package, which offers fixed cost motoring with no hidden extras.
Personal Contract Hire is similar to Business Contract Hire. However, as an individual you will not be able to recover any VAT or take advantage of any tax allowances.
- Low deposit and low monthly rentals; one of the most cost effective options if you need full use of a vehicle but don't require final ownership
- Choice of contract period from 24 to 60 months
- No need to deplete your savings
- Allows you to change your vehicle more often
- Fixed cost motoring
- You have the option to add maintenance, taking away the hassle of running a vehicle
- You can hire a new vehicle for the price of an old one
- Access to fleet related discounts
- No depreciation risks
- Less administration as the finance company deals with all the buying, maintenance and selling issues
- Road Fund Licence is provided for the full term of the contract
- You will need to accurately estimate the time and mileage for the use of the vehicle
- The cost to early terminate the contract can be expensive
- If the vehicle goes over their agreed mileage allowance, excess mileage will be charged for each mile over that is stated in their contract
- You must look after the vehicle and return it in a well maintained condition, or you will be charged for any damage over and above this as stated in the 'Fair Wear and Tear Guide'
- There is no option to own the vehicle at the end of the contract
- No benefit from equity build up
This would suit customers who:
Want a more expensive vehicle than their budget would normally allow i.e. A new vehicle instead of a used one.
Want to avoid the risk of depreciation and maintenance costs.
Want fixed cost, stress free motoring.
Are not worried about owning a vehicle.
Want to change their vehicle regularly.
Are not VAT registered because VAT is paid on rentals rather than all upfront.