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Personal Contract Hire

What is Personal Contract Hire?

A Personal Contract Hire is an agreement where Customer pays a fixed monthly instalment for using the car for a predetermined time period and a preset mileage. Usually the car has to be returned at the end of the contract.

Who can benefit from Personal Contract Hire?

Personal Contract Hire was initially designed for those who wanted to avail of the car allowance instead of the company car. It is a wonderful option for individuals who are fond of using good cars but cannot afford to buy one outright. It is also good for those who like to replace their cars with new ones frequently.

Prominent Features of Personal Contract Hire

Fixed monthly rentals: Fixed rentals enable customers to set a limit on the car spend and plan for the monthly budget accordingly.

Flexible Contracts: Personal Contract Hire Agreements are typically for a period of 24 – 48 months. Longer contracts can be prepared to suit specific customer needs.

Low initial deposit: Generally initial deposit amount is equal to one month’s rental.

No ownership risk: The car is owned by the car lease company during the period of the contract; hence ownership risks are not transferred to the Customer.

Maintenance: Maintenance costs can be included in the monthly installments to take care of any unexpected maintenance expenses.

Road Fund Licence: Road Fund Licence is included in Personal Contract hire agreements for full length of the contract.

No disposal Issues: Customers can return the car to the company at the end of the contract. They need not worry about selling the car or its residual value.

Optional Ownership: Customers can choose to purchase the car; via a third party; at the end of the contract.

VAT: VAT is charged as a part of monthly instalments and it cannot be reclaimed by individuals. VAT is claimed back on purchase of the car by the car lease company.

Car Leasing UK’s qualified staff will be more than glad to advice you on all aspects of Personal Contract Hire. Call us right away if you require any further details of Personal Contract Hire or a no obligation quote.

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