If you are looking for reasonably priced, fixed-cost motoring that you can tailor to suit your budget and mileage, PCH is a great form of funding. You make the same costs repayment each month on a vehicle of your choice.
The good news is that often, sought-after cars that you may have considered as being out of your price range, have good residual values which result in lower rentals!
Personal Contract Hire gives you the choice to put down a low initial outlay; you can choose your own initial payment and contract term, usually between 24-48 months.
VAT is included within your monthly rental and you can also choose to take out a servicing and maintenance package which often work out very reasonably when considering the bulk discounts that funders secure for their fleets. This effectively takes care of all your motoring costs, except for fuel and insurance.
The first payment – classed as ‘1’ payment – consists of months that are added together, i.e. 3, 6 or 9 months in advance. There is no refund at the end of the contract for these months unless you choose to customise your PCH agreement in this way. The higher the initial payment, the lower your rental will be.
Some clients opt for 1 payment down which is an option, particularly for those of you who have a history of ‘good credit’.