Personal Car Contract Hire by Compare Contract Hire

Personal Car Contract Hire is simply a method of long term rental offering you a fixed monthly rental for the vehicle you want. You can choose how long you want to keep the vehicle for and simply send it back and order a new vehicle at the end of the contract.

It is a really simple way to budget your motoring costs as all you do is insure and put fuel in your vehicle.

Why buy a car when they lose value over time?

Personal Contract Hire protects you from the depreciation risk of owning a vehicle and can include maintenance cover/breakdown cover (optional), vehicle excise duty and much more. This finance method can be attractive for company car "opt out" employees or private individuals who do not want to tie up cash in their car nor have the financial risk of owning their vehicle.

You can reduce the administration of buying, servicing (if part of the contract) and disposing of vehicles by personal contract hiring via our Contract Hire Partners.

Just hand the vehicle back at the end of the contract and order a new vehicle - it's as easy as that!

Below are a list of benefits of contract hire and also the things you do need to know about this method of vehicle funding. Please have a look at the points so you are fully informed about Personal Contract Hire.

You may also want to look at the Contract Hire Jargon Buster under the Useful Information section as this explains many of the terms you will hear.

Benefits


  • Even though a vehicle actually costs more to buy, the contract hire rental for a more expensive vehicle may be less, due to the method of setting a contract hire rental.
  • The Contract Hire initial payment is usually three months rental but flexibility can be offered on deposits.
  • Thereafter one monthly payment, payable by direct debit, covers most costs providing better budgeting. 
  • No benefit in kind if you are opting out of a company car scheme.
  • Enjoy the contract hire and leasing company spend power and discounts.
  • Freedom from disposal worries and risk as this is the job of the contract hire and leasing company.
  • The Contract Hire leasing company recovers the VAT on the vehicle purchase, which means the vehicle costs less to finance. This benefit is passed on in the rental to you.
  • Reduced administration and risk as maintenance, mechanical repair, replacement car, breakdown recovery, tyres, batteries and exhausts can be part of the contract hire package.
  • Vehice Excise Duty (Road Fund Licence) is normally included on non maintenance or maintenance contract hire.
  • As the driver of the vehicle, the Contract Hire company may provide you with a purchase price to buy the vehicle if this is acceptable to both parties, but you need to check this with each company.
  • The car or van is usually delivered nationwide to your door free of charge (UK Mainland) and at the end of the contract it can also be collected.

Things you need to know


  • Add VAT to the base rental as you cannot claim this back as a private individual. 
  • Always check the annual mileage and the total number of monthly payments you will be making (including the initial deposit rental), if obtaining other quotations elsewhere, to ensure you are comparing like for like.
  • Always ask if there is a document fee involved as if you divide this fee by the number of months in your contract the "actual monthly" rental is higher than you think. 
  • Personal Contract Hire is a fixed contract to term and mileage. Go over the contract mileage and you will pay an excess mileage charge. 
  • There will be a charge, if you return the vehicle early to the contract hire company.
  • If you opt for a non maintenance contract then if the vehicle breaks down it is up to you to fix it.
  • If you don't opt for breakdown cover as part of your contract check what the manufacturer offers FOC (normally first year only but varies).
  • If you damage the vehicle, it needs repairing and it is your fault, then this is not covered under the "with maintenance" contract.
  • Glass and windscreen replacement is not normally covered under the "with maintenance" contract.
  • If you return the vehicle in a damaged condition, other than "Fair, Wear and Tear" you may be liable for a bill.
  • You need to insure the vehicle in line with the contract hire company requirements.
  • If the vehicle is written off for any reason, you may be liable for the difference between the vehicle book value of the contract hire company and what your insurance company pays out.

 

 

Compare Contract Hire Ltd cannot be held responsible in any way concerning the accuracy of the above information. Please seek professional advice from your accountant.

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Personal UK Car and Van Contract Hire Leasing explained by Compare Contract Hire

Car or Van Contract Hire Leasing UK covers depreciation risk, maintenance cover and breakdown cover (optional), vehicle excise duty, administration and much more.

Why buyacar or buyavan?

For a private individual or company car opt out employees, owning a vehicle can seem attractive however many consumers are now opting for personal car contract hire leasing. The reason they are doing this is because all the risks associated in running a vehicle can be left with the UK car or van contract hire and leasing company. You simply pay your monthly rental and hand the car or van back at the end of the personal contract hire lease.

Cost-effective personal car contract hire leasing for vehicles.

The guide above aims to help you with your decision and will tell you the benefits but also some of the other things you need to know. If you do decide to use personal contract hire leasing as your finance route you will be able to use the functionally rich quote engine to compare car or van leasing prices or just check out the Contract Hire Special Offers contract hire quote section for the latest deals. Contract Hire terms will vary on the offers however these have been clearly laid out for you.

Compare UK car and van contract hire leasing quotes instantly with multiple funders to get the best deal.

The top ten things to remember about business and personal contract hire.

  1. Personal Contract Hire is a form or rental - you are not buying the car or van.
  2. Personal Contract Hire companies recover the VAT when they buy the vehicle and this benefit is passed on to you in a lower contract hire rental. As a private user you will have to VAT on the rental. 
  3. Personal Contract Hire can give you fixed cost motoring as all you do is pay one monthly contract hire rental.
  4. Perssonal Contract Hire is fixed to an annual mileage. Go over the contract hire annual mileage allowed and you will pay a charge.
  5. The risk of selling the vehicle at the end of the contract is down to the Contract Hire companies.
  6. Personal Contract Hire can cover most things like all routine servicing, mechanical repair,tyres, batteries and exhausts.
  7. The road fund licence is normally included for the contract hire arrangement.
  8. Personal Contract Hire is great if you don't want to tie up loads of cash in a vehicle as when you buy a car or van they lose value over time.
  9. Personal Contract Hire can allow you to drive a better car or van than you think because of the way each leasing company sets the resale or residual value of the vehicle.
  10. Personal Contract Hire can be referred to as car or van leasing and is becoming more popular for small businesses and private buyers interested in car leasing.

The site allows you to quote on Estates, Sports, Saloon, Hatchback, vans, pick ups,prestige and 4x4's.

You can quote on all makes i.e. Audi, BMW, Mercedes, Toyota, Ford, Volkswagen, Honda, Fiat, Alfa Romeo, Vauxhall indeed any make or model,