This depends on the type of contract taken but usually you can either hand the car back, extend the contract or purchase the vehicle from the finance company (dependent upon the funder).
We offer free UK mainland delivery to home or work. Collection depends on the type of contract taken. For contract hire or personal contract hire and contract purchase or personal contract purchase the finance company will collect the vehicle at the end of the contract unless you are purchasing the vehicle.
All vehicles include at least 12 months breakdown cover from the manufacturer although most manufacturers now offer 3 years cover fee of charge. Within the car or van book pack there will be an emergency number to contact day or night.
A personal contract hire (PCH) agreement involves you signing a contract to lease a car for a fixed period of time at an agreed monthly cost. For private leasing (for individuals) that means cost-effective and flexible motoring which often works out as being cheaper than other forms of finance such as personal contract purchase (PCP) and hire purchase (HP).
With both PCH and PCP agreements, the finance company owns the vehicle throughout the lease. As the name suggests, the lessee is merely hiring the car for a contracted length of time. At the end of the lease, the vehicle is handed back to the finance company, whereas those taking out personal contract purchase (PCP) deals will have the option of buying the car outright at the end of the lease.
This means how many months upfront you can pay as you initial rental on your choice of car lease. So if you were looking at leasing a car for £199.99 per month and the deal states that the initial rental is six months you would pay £1,199.94 in the first month, outside of any additional fees.
Your initial rental will usually be taken between 1 and 3 weeks AFTER your vehicle has been delivered - you can class this as your first month’s payment.
Contract Hire, sometimes referred to as an Operating Lease, is a long term rental agreement. Contracts range from 12 to 60 months and are tailored to the businesses requirements.
The Contract Hire Company reclaims the VAT on the original purchase, which reduces your monthly rentals (which are + VAT). Contract Hire is a very popular choice for VAT registered companies as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use, no exempt turnover and not being on the Flat Rate VAT Scheme).
On contracts with maintenance the VAT on the service element is 100% recoverable. One of the major benefits is that there are no disposal worries as the future value is underwritten by the leasing company. Another benefit of Contract Hire is that it is generally 'off balance sheet funding' (subject to legislation change) which means it can improve your gearing ratio (assets to borrowing ratio) and therefore possibly your borrowing ability in the future.
Personal Contract Hire (PCH) is based on a fixed term contract where customers pay an agreed monthly charge for the use of a vehicle for a previously agreed period.
It benefits customers wishing to eliminate the financial risk associated with disposing of a vehicle. Contracts are usually taken over two, three or four years, providing a high level of flexibility. Some contracts can be formally extended beyond the end of contract date if required. Just ask and we can answer any of your questions regarding extending your contract.
PCH is very similar to business Contract Hire; both are based on a fixed annual mileage agreed on inception of a contract. You will need to decide how many miles you drive each year before quotations can be obtained. Once you have stated how many miles you drive in a year and considered which vehicle you would like to lease a quote can be created for you by one of our sales team.
Regulations with regard to making mileage amendments after contracts are live vary from funder to funder, so it is always better to be as accurate as you can be. If you do exceed the agreed allowance at the end of your contract you will pay an excess mileage charge, which will have been agreed upon prior to signing the finance agreement.
Please remember this when deciding upon you annual mileage. If you are looking to have predictable motoring costs adding maintenance to your monthly payment is easy. Maintenance is there to put your mind at rest should any challenges arise with your vehicle and generally covers servicing, routine maintenance, tyres, exhausts and batteries.
Please note that it is responsibility of the person named on the finance agreement to arrange and pay for fully comprehensive insurance for the vehicle. It is important that the vehicle is returned in accordance with the guidelines set out in the 'Fair Wear and Tear Guide', a copy of which is made available to customers when they are near the end of their PCH agreement.
Business contract hire is popular with various types of fleets and works in much the same way as personal contract hire, albeit exclusively for companies.