This is the most cost-effective and manageable form of car leasing. It is also the most popular way of hiring a business vehicle as it allows you to run your vehicles for a fixed monthly cost.
Personal contract hire is the same as business contract hire but it applies to private individuals.
With a PCH agreement, you have the car for an agreed lease period, with a fixed mileage and you pay fixed monthly payments to a lease company. When the lease expires, you simply hand the car back to the lease company.
For business users, if you are provided with a cash allowance instead of a company car, PCH can help to eliminate facts such as depreciation, maintenance and disposal of the vehicle. You are also able to choose from a larger selection of cars.
As you never actually own the vehicles, you never have to worry about resale values, you simply return and walk away. It’s as easy as that.
This is becoming one of the most popular ways of financing a new car. Basically it is hire purchase with a balloon. The finance company decide what the ‘balloon’ amount will be by deciding what the car will be worth at the end of the agreement.
The balloon is called a GFV (Guaranteed Future Value). Your payments are based on the total amount repayable minus the GFV value, spread over the term.
This form of leasing is very flexible as you have 3 options at the end of your contract period:-
Finance lease allows you t spread the cost of the vehicle over a period of time. This is the simplest form of leasing and enables you to drive a chosen vehicle with minimum capital outlay. An advantage is that you can show your car as an asset in the balance sheet.
Sole traders, partnerships, VAT-registered business can all take advantage of financing a vehicle by this method.
The monthly rental is calculated by the initial cost of the vehicle, the finance lease period, the residual value and the end balloon payment. At the end of the agreement the vehicle is sold to a 3rd party by the finance company.
Finance lease agreements are also available to businesses looking to pay the entire cost of the vehicle, including any interest, over an agreed lease period.
If you would like to buy your car outright, we will source the vehicle for you with the maximum discount included.
Manufacturers are always offering additional support to vehicles that are purchased outright, so please contact us with your requirements and we will be very happy to help.
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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