How it works
One of the most common forms of personal leasing, personal contract hire is exactly the same as contract hire for business users but is purely aimed at private individual customers.
It enables you to take control of a car for a fixed term – typically between two and four years – and mileage in return for paying a fixed monthly rental payment. You will also need to make an initial deposit payment.
We calculate the monthly rental payment based on the estimated residual value of the vehicle – which is its value at the end of the contract when depreciation is taken into account – as well as incorporating an interest margin and a management fee used to provide support to you over the life of the agreement. Vehicle Excise Duty is also included.
As the vehicle is owned by us, you will never own it yourself and there is no option to acquire it for a lump payment.
In return, you benefit from no disposal or resale risk and can just hand the vehicle back at the end of the agreement. Providing the vehicle is returned in a condition appropriate for its age and within the contracted mileage, no further costs are payable and we are responsible for its resale.
This means at the end of the contract you can simply walk away and take out a new lease if you choose.