Pick-Up Finance

MW Vehicle Contracts are appointed credit brokers of five of the top leasing and contract hire companies in the country, including Network Vehicles (part of the worldwide LeasePlan brand), Lex Vehicle Leasing, Alphabet, Arval and Hitachi. MW Vehicle Contracts are also proud members of the BVRLA (British Vehicle Rental and Leasing Association). Below you will find a brief overview of the differences between the main finance options for vehicle leasing. If you would like a more in-depth analysis of the options available to you, please do not hesitate to contact us

Contract Hire (CH)

This is what is known as a 'no risk agreement', ideal for companies who need vehicles on a fixed monthly budget with the option of including maintenance. At the end of the term you simply hand the vehicle back with no risk of any short fall in the vehicle value.

Main features and benefits of Contract Hire include:

  • Fixed rentals for the whole package, making budget planning easier. 
  • Flexible terms to meet your requirements with variable duration and mileage terms. 
  • Road Fund Licence included for the duration. 
  • Service and maintenance costs can be included in monthly rentals. 
  • Contract hire removes depreciating assets from the balance sheet and the associated risks of owning a vehicle(s). 

Personal Contract Hire (PCH) 

For private individuals wanting to benefit from the popular contract hire for businesses (as above). This is fast becoming the most popular amongst private car users. 

Main features and benefits include:

  • Fixed rentals for the whole package, making budget planning simple. 
  • Flexible terms to meet your needs with variable duration and mileage terms. 
  • Service and maintenance costs can be included in monthly payments. 
  • Simply hand the vehicle back after agreed term (no disposal risks). 

Contract Purchase (CP)

For companies who want their own vehicles but who want to avoid any risk of depreciating assets

Main features and benefits include:

  • Similar benefits to contract hire - fixed payments and flexible agreement terms. 
  • Maintenance services can be included. 
  • The finance company guarantees the resale value of your vehicle at the end of the contract purchase agreement for a known and fixed amount. 
  • Ownership passes to the customer (you) at the end of the agreement after all payments have been made. 

Finance Lease (FL)

Main features and benefits include:

  • This is the most popular option our customers take. 
  • Finance Lease is a tax efficient option where you choose to pay either the entire cost of the vehicle (known as fully amortised lease) including charges, over an agreed lease period or opt to pay lower monthly rentals with a final rental based on the anticipated resale value of the vehicle (residual value).
  • At the start of the contract usage parameters (term and mileage) for the vehicle are agreed. Assuming this does not change,the monthly rentals are fixed for the full duration of contract. You benefit with fixed costs but do take on the administration and operating risks. At the end of the contract you may continue to operate the vehicle under a annual secondary rental charge, although at no time take ownership of the asset, and must sell on to a third party. 

Lease Purchase (LP)

Main features and benefits Include:

  • Lease Purchase is an agreement designed to offer vehicle funding where the customer (you) wishes to purchase the vehicle. It is a finance package,it does not include maintenance or any other services. A great way of benefiting from our massive buying power to reduce your outlay. 
  • The customer (you) is liable for the full value of the vehicle with no option to return at the end of the agreement.   
  • As the vehicle will appear on balance sheet, you benefit by having a 'writing down' allowance against your tax liabilities, either all in the first year or spread over a number of years.  
  • A very cheap way of buying a vehicle as you attract full fleet discounts that we pass on to you 

MW Contracts only employ fully qualified and certificated finance specialists (ask other companies if they can say the same?). Please call for free valuable advice. Members of the BVRLA - there to protect you! We are proud to be a Network Platinum Broker.