With this option you lease your vehicle for a fixed period and for a fixed monthly rental which also includes the cost of your Road Fund Licence.
How Personal Contract Hire works
At the start of your agreement you pay an advance rental upfront. Your monthly rentals are based on the difference between the initial value of the vehicle and its projected residual value at the end of your agreement. Therefore, only a proportion of the vehicle’s value is repaid, which keeps monthly payments lower.
With a Personal Contract Hire agreement, you can choose from our ‘No Maintenance’, ‘Service Only’, ‘Full Maintenance’ or ‘Full Maintenance with Tyres’ options. This means the costs are fixed over the term of the agreement allowing you to budget easier and reducing any unexpected costs.
Personal Contract Hire features include:
- Pay an advance rental upfront.
- Fixed regular monthly rentals (that includes VAT at 20%) means you can easily budget.
- Rentals are based on your annual mileage agreed at the start of your agreement and only on a portion of the vehicle’s value, keeping your monthly payments lower.
- Capital expenditure is eliminated.
- Rentals are allowable against taxable profits (proportionally).
- VAT is reclaimable depending on usage (proportionally).
- The vehicle is not shown as an asset on the balance sheet.
At the end of your agreement
Simply return your vehicle with nothing more to pay, subject to it being in line with our Vehicle Return Standards, as vehicle condition, excess mileage and other charges may be payable.