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Personal Contract Hire (PCH)

Personal Contract Hire delivers all the benefits of a company car to the private individual. Personal Contract hire gives the user a fixed monthly rental for a fixed contract term. At the end of the contract term you hand the car back to the finance company, no need to sell the vehicle privately or worry about its value.

The benefits of Personal Contract Hire:

Low initial outlay

Flexible deposit

Choice of rental period

No final payment

Fixed monthly rentals

Optional maintenance contract

No disposal problems

Optional relief vehicle

Road fund license included for the full contract length

No residual risk

Please see attached chart which gives you an overview of product features. However please feel free to contact us to obtain further in depth information.

	Contract Hire	Contract Purchase	Hire/Lease Purchase	Finance Lease	PCH/PCP	Outright Purchase
Accurate monthly budgeting	X	X	X	X	X
Improved cash flow	X	X	X	X	X
Low Deposit	X	X		X	X
Fixed interest rates	X	X	X	X	X	n/a
Capital allowances available		X	X		n/a	X
Ownership of vehicle		Optional	X		Optional	X
VAT recoverable on rentals	X (1)			X (1)
VAT recovered by lease company to reduce rental	X			X
No depreciation risks	X	X			X
Note 1: Only 50% of the VAT relating to the finance element is recoverable if there is private use of the vehicle. If the vehicle is only used for business purposes 100% of the service element VAT is recoverable on contract hire only.

PCH/PCP

Accurate monthly budgeting

Improved cash flow

Low Deposit

Fixed interest rates

n/a

Capital allowances available

n/a

Ownership of vehicle

Optional

Optional

VAT recoverable on rentals

X (1)

VAT recovered by lease company to reduce rental

No depreciation risks

Note 1: Only 50% of the VAT relating to the finance element is recoverable if there is private use of the vehicle. If the vehicle is only used for business purposes 100% of the service element VAT is recoverable on contract hire only.

Running the Vehicle

	Contract Hire	Contract Purchase	Hire/Lease Purchase	Finance Lease	PCH/PCP	Outright Purchase
Vehicle disposal	X	X			X
Reduced administration	X	X	Optional	Optional	X	Optional
Road fund licence provided	X	X			X (2)
Breakdown cover	Optional	Optional	Optional	Optional	Optional	Optional
Relief vehicle	Optional	Optional			Optional
Fixed charge maintenance	Optional	Optional			Optional
Payment Protection	Optional	Optional	Optional	Optional	Optional
VAT recoverable on services	X	X			X (2)	X
Optional GAP insurance	X	X	X	X	X
Note 2: Road fund licence is provided for the first year only.

PCH/PCP

Vehicle disposal

Reduced administration

Optional

Road fund licence provided

X (2)

Breakdown cover