Personal Contract Hire
What is personal Contract Hire
Personal Contract Hire (often called personal leasing) is contract hire for individuals
Personal Contract Hire (PCH) is a van leasing deal with a fixed term contract. You simply pay an agreed monthly payment to use the vehicle for an agreed length of time.
Pros:
- Flexible initial payment, fixed monthly payments
- Know where you’re up to with a fixed-term contract, fixed mileage allowance and thus fixed cost driving.
- Deals to suit you
- Pay only for the use of the van
- Hand back the van at the end of the contract
- Maintenance options available
- No financial losses from depreciation
- No worries about selling or trading in the vehicle
Cons:
- Damaged or badly maintained vehicles will incur charges on return
- Ending the contract early can be expensive
- Fully comprehensive vehicle insurance is required
- The vehicle will never belong to you
Personal Contract Hire; Further Information
- Personal Contract Hire is useful for clients who want to eliminate any monetary risk from running and selling a vehicle. Contracts can run over two to four years, so there’s plenty of flexibility. Contracts can sometimes be extended over the initial end date if required. Blue Chilli Van Leasing will help and advise in any way, including regarding extending your contract.
- Like Business Contract Hire, personal contract hire is also based on a fixed yearly mileage agreed at the outset. Quotations are obtained once you decide how many miles you need and chosen your vehicle.
- Every funder has a different policy with regards to changing the mileage mid-contract, so it’s important to be accurate as an excess mileage charge will apply if the stated mileage is exceeded.
- To keep motoring costs under control, it’s often possible to add a maintenance package. Including this with your monthly payments is straightforward and helps to ensure no nasty surprises or unexpected expenses. Maintenance packages can give peace of mind. They generally cover servicing, routine maintenance, tyres, exhausts and batteries.
- The person named on the finance agreement is responsible for arranging fully comprehensive insurance for the vehicle.
- The vehicle must be returned in accordance with the 'Fair Wear and Tear Guide'. This will be supplied to customers approaching the end of their PCH agreement.
As with every aspect of leasing your car or van, contact us with ANY queries or questions. The Blue Chilli Van leasing team are here to help. It’s what we do.
