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 one of our dealerships.
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.
Purchase Personal contract purchase (PCP) is available to everyone, subject to status. PCP provides a new or used vehicle for a pre-determined period, normally 24 - 48 months. Like contract hire the contract has a low initial payment, usually 3 monthly payments, followed by fixed payments for an agreed period with an agreed mileage. At the end of the contract period there is a guaranteed future value that you have the option of paying to take ownership of the vehicle, or you can hand back the car to the finance company without penalty. View PCP new car prices.
Hire purchase is a simple, straightforward way to spread the cost of buying a new car. It is fixed rate finance - with a fixed monthly payment. The deposit you pay is flexible - from as little as £99. The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months).
Lease Purchase is essentially Hire Purchase with a balloon payment at the end of the contract. Lease Purchase offers lower monthly payments than normal hire purchase. Instead, at the end of the agreement, you can make a final lump sum payment (or 'balloon') to own your car.
It's fixed rate finance - but with a lower fixed monthly outlay since you defer repayment of some of the borrowing. At the end of the agreement options include car purchase, refinance, part exchange or resale. The deposit you pay is flexible - from as little as £99. The remaining balance, plus fixed interest, is repaid in equal instalments over an agreed period (12-60 months) plus a final balloon payment. View lease prices.
