What is a Personal Lease?
We get asked this question time and time again.
It is very simple really.
It is a cost effective way for consumers to have the use of a motor vehicle for a set period of time at a pre set cost.
Personal Contract Hire is the Lease that we would recomend to all our customers, it includes Vehicle Road Tax for the duration of the Lease it does not attract an interset rate and you can have it fully maintained with or without a relief vehicle.
You can have a Lease over anything from 24 months and upto 60 months with an annual mileage as low as 5,000 miles per annum or upto 150,000 for the lengh of the contract depending on the vehicle.We would advise having the lease over 36 or 48 months which will keep maintenance costs for the vehicle to a minimum.
The Lease companies purchase the cars at a discounted price, they are able to negotiate large discounts due to the volume of vehicles they take at any one time, this discount is passed onto you the consumer to lower your monthly payments of the Lease.
At the end of the contract the vehicle is returned to the Lease company for disposl with you the consumer not having to worry about what the vehicle may or may not be worth.It is the consumers responsibility to maintain the vehicle and keep it in good order so as not to have any further charges at the end of the Lease.(See our section on guidlines for returning your vehicle)
All rentals are normally plus VAT but with you not being able to claim any proportion of the VAT back like a business all quotes will include vat at the prevailing rate.All Lease agreements are designed to fit in with your budget and what you want to use the vehicle for.
Our initial rental can be from 1 rental in advance or you can chose from 3,6,9 or 12 rentals, the larger the initail rental is the less your monthly payment.Plaese not that the initial rental is usually paid within 7-10 working days after you have taken delivery.The annual mileage you will use the vehicle for is set at the start of the Lease and form spart of the Lease cost calcultaion, the more miles you travel the more per month the Lease will cost.If your usage changes they will also charge a pre aggreed ecess mileage charge.
All vehicles supplied are New (or pre-registered)and come with a full or remainder of a manufacturers warranty.
Advantages of Personal Contract Hire
Fixed cost motoring
'Off' balance sheet funding
Available to all business types, Sole Trader, Small Partnerships, Large Partnerships, Limited Companies and PLC's
Tax relief for your business (Please refer to your accontant)
No worries about disposal at the end of the contract (subjct to BVRLA Fair Wear and Tear Guide)
Disadvantages of Business Contract Hire
There is no ability for the business to purchase the vehicle
All rentals attract VAT
Early settlement, there is no prescribed formula for early settlement, each leasing company operates independently on this.
Potential de-hire charges
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