Depending on your circumstances, you have a variety of options when deciding how to purchase your next car.
Contract Hire
Contract hire is a vehicle leasing contract that benefits sole traders, partnerships limited companies that are normally V.A.T. registered businesses.
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A single fixed rental is paid each month which includes
road fund licence and
is subject to V.A.T. - Rental periods vary according to requirements with a 1 or 3 month initial deposit.
- Service and maintenance packages can be included within the contract hire agreement if required.
Personal Contract Purchase
Personal contract purchase (PCP) is similar to contract hire where an individual can lease a vehicle (subject to status) for a fixed monthly payment usually from 12-48 months with a low initial payment with a fixed mileage over an agreed period.
At the end of the contract period there is a guaranteed future value with the option of handing the vehicle back without penalty providing the vehicle has not exceeded the agreed mileage or paying the balloon payment to buy the vehicle outright.
Personal Contract Hire
Personal contract hire (PCH) is a new concept especially designed for individuals who choose to opt out of a company car scheme in favour of a company car allowance.
Subject to status.
The monthly payments would be the same as contract hire rates plus 171/2%.
V.A.T. is non-reclaimable on PCH.
PCH is available on all UK supplied cars only.
At the end of the contract the vehicle must be returned to the finance company.