Cars are among the most popular modes of transportation on the planet. The freedom to drive wherever and whenever you want never really gets old. When compared to buying a car outright, Personal Contract Hire (PCH) makes using a vehicle much easier and more affordable. Once you have a Personal Contract Hire agreement, you can drive a car for an agreed period. This is recognised as a 'lease period.' Even though you have possession of the car, you do not own it. So what exactly is a personal contract hire and what are its benefits?
What is Personal Contract Hire?
Personal contract hire is a type of leasing for drivers rather than businesses that allow you to lease a car for one to four years. It is a fantastic option if you want to drive a new car regularly while keeping monthly payments low. You are only repaying a portion of the car's value, unlike with personal contract purchase (PCP) agreements; the difference between these two types of financial services is that you do not have the option of purchasing the car outright at the end of a personal contract hire agreement.
How does Personal Contract Hire Work?
Once you've found the car you're looking for, a member of the MWVC team will discuss it with you and go over all of your specific needs. This is referred to as qualification, and it will cover everything from your expected annual mileage and how long you want the vehicle to how the car will be used. This allows us to fully understand your needs and, as a result, recommend the best type of financing for you. After you've determined how many miles you'll be driving. You will then proceed to the initial rental.
The initial rental is the first payment of the agreement, followed by your monthly rentals after that. During the quotation process, you choose the amount, which you will have discussed with your sales executive during the qualification process. However, it is usually based on a multiple of the monthly rental and would be three, six, or nine times the monthly rental. Initial rentals of one or twelve times are also possible. After the initial rental, comes the monthly rental, this is how much you pay each month until the agreement ends, the higher the initial rental the lower the monthly. At MWVC, we take a holding deposit to secure the vehicle, once the order has been made we usually deposit it into your account 14 days after you have taken delivery.
Advantages of Personal Contract Hire
There are many advantages to personal contract hire, here are just a few for you to consider when looking at contract hire:
- - The deposit and monthly payments are lower than with HP or PCP, allowing you to drive a more expensive vehicle.
- - Depending on your chosen contract length, you can upgrade every 2 years, eliminating the concern of owning an older car that is no longer covered by the manufacturer's warranty.
- - You won't have to worry about the car's value depreciating while you're driving it, and you won't have to deal with the hassle of selling it.
- Because you're only paying for the use of the car, it's a better deal than buying outright and then incurring losses due to depreciation.
Why Choose MWVC?
When it comes to choosing the right deal for them, MWVC has personal contract hire deals to suit everyone's needs. Our knowledgeable sales staff can advise you on the best deal for you. Still not sure if PCH is the right choice for you? Call us at 0116 490 6852 and a member of our team will gladly assist you.
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*All pricing is correct at the time of publishing.