Car leasing (also known as 'contract hire) explained simply
In simple terms, leasing a car on personal contract hire (PCH) means that you’ll get the keys to a brand new car that you can drive for an agreed number of years, covering a capped number of miles, in return for fixed monthly payments that make motoring a doddle to budget. Click here for our very frank look at whether a car/van lease is suitable for you or not and what the pros and cons to personal contract hire are in general.
Advantages of Contract Hire
- It may be possible to obtain a higher value product for your budget
- Fixed cost motoring
- Available to all customer types subject to finance approval
- All vehicles supplied are New (or Pre-Registered), and will come with the balance of manufacturers warranty
- No worries about disposal at the end of the contract (subject to BVRLA Fair Wear and Tear Guide)
Disadvantages of Contract Hire
- There is no ability to purchase the vehicle
- All rentals attract VAT
- There is no prescribed formula for early settlement, and each leasing company operate independently
- Potential de-hire charges
Click here for our candid look at whether a car/van lease is suitable for you and what the pros and cons to personal/business car leasing are in general.