Personal contract car hire is the convenient, low cost alternative to traditional funding methods and is the favourite method of funding for people opting out of their company car scheme as opposed to business contract hire.
With personal contract hire deals also known as private car leasing or personal contract finance, in return for a fixed pre-determined stream of rental payments, the finance company supplies the vehicle and takes full responsibility for its depreciation, funding costs and administration. If an including maintenance contract is taken this is also extended tothe provision of all servicing and repairs this excludes accident repairs but does include tyres, exhausts etc. It also typically covers the road fund licence and where specified or opted for, a replacement vehicle as well.
The rental calculation is based on time, mileage, and also the cost of maintenance where this is included in the contract.
For anyone thinking about contract hiring a car, it's very important to understand what contract hire is — and what it is not — and how it works and if you have any questions no matter how small just give us a call.