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Personal Contract Hire

As the name suggests Personal Contract Hire (also known as personal leasing) is simply contract hire but for individuals

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.

Advantages

  • Flexible initial payment
  • Fixed term contract
  • Fixed mileage contract
  • Fixed cost motoring
  • Flexible profiles to suit you
  • You only pay for the use of the vehicle
  • At the end of your contract simply hand the vehicle back
  • Option of including maintenance with the contract
  • No depreciation or disposal risk

Disadvantages

  • Vehicle must be returned in a well maintained condition
  • Early termination can be expensive
  • You must have fully comprehensive vehicle insurance
  • You will never own the vehicle

More Information

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.

Call 0121 796 1930 for more information

Or alternatively, click HERE for a fully tailored quote

Business Contract Hire

A simple and cost effective way to fund any number of vehicles

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.

 

Advantages

  • Minimum capital expenditure
  • Accurate monthly budgeting
  • Improved cash flow
  • Fixed interest rates
  • Rentals can be offset against the businesses profits. Cars with a CO2 output above 130g/km are currently subject to a 15% disallowance on the amount of the rental that can be claimed against the businesses taxation, for contract-hired cars with a CO2 output of 130g/km or below, there is currently no disallowance.
  • Reduced administration
  • On-going advice and support
  • Road Fund Licence provided (vehicle excise duty paid) for duration of contract
  • Optional maintenance package
  • Optional breakdown rescue cover
  • Optional replacement vehicle cover in event of breakdown
  • Optional GAP insurance which provides cover for the shortfall between the outstanding finance and the insurance value if the vehicle is declared a write-off by your insurance company

Disadvantages

Disadvantages:

  • Early termination can be expensive
  • If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
  • You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the ‘Fair Wear and Tear Guide’
  • You must have fully comprehensive vehicle insurance
  • You will never own the vehicle as there is no option to buy it

More Information

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.

Call 0121 7961930 for more information

Or alternatively, click HERE for a fully tailored quote

Funding

Through our funding partners we can ensure that a unique perfectly tailored quotation is sent to you to enable your business to move forward. A few of the things we can help fund include:

  • Commercial Mortgages
  • Yellow plant (Diggers etc)
  • Trucks
  • Fleet Solutions (cameras, GPS trackers)
  • Livestock (provided they are not for slaughter)
  • Air Conditioning units
  • Land purchases
  • And many more

For more information, please call 0121 7961930 to speak to an advisor.

Call 0121 7961930 for more information

Or alternatively, click HERE for a fully tailored quote