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What is Personal Contract Hire Cars

One of the most common questions we get asked is “What is personal contract hire cars, and how do they differ from hire purchase cars?” and so in this article, we are going to try and answer that question.

Deciding exactly how you are going to finance your car is one of the biggest decisions you will make when it comes to your car. There are lots of contract car leasing deals out there, so how do you decide which one is right for you?

 

Hire Purchase (HP)

Buying a car using Hire Purchase (HP) usually means you will pay a deposit, and then pay the rest of the cost of the car off over a period of months. When the agreed hire purchase loan amount is paid off, the car is then yours

Pros of HP:
• You can drive a car that you may not have been able to afford outright
• You don’t need to estimate your mileage at the beginning of the contract
• Once you have made your final payment, you own the car

Cons of HP:
• Monthly payments may be higher than with other options
• You can’t sell your car before you settle the HP finance
• You don’t own the car until you have made the final payment
• The car has to be in your possession, fully insured and maintained until the final payment is made

 

Personal Contract Hire (PCH)

This is what the team at Amber Vehicle Solutions specialise in, and it is a long-term rental agreement that will be perfect for you if you don’t want to own the car at the end of the agreement and you don’t want to change the car quickly. With PCH you lease the car for an agreed period of time and make fixed monthly payments. When the contract period is up, you simply return the car.

Pros of PCH:
• You can drive away the car without worrying about re-sale value
• We can offer you a contract with maintenance built-in, saving you the hassle of unexpected repair bills •Your monthly repayments will be much lower than if you wanted to purchase the car
• You have access to a wide range of cars that you may not otherwise have been able to afford

Cons of PCH:
• There is no option for you to purchase the car at the end of the contract
• You have to agree to an annual mileage at the start of the contract, and not exceed it or you will have to pay extra
• You are tied into the contract in a similar way to a mobile phone contract, and so there will be significant charges if you want to end the contract early or change it in any way.

If you have weighed up all of the options and feel that personal contract leasing cars UK is the option for you, then please get in touch with the team at Amber Vehicle Solutions today – or browse the website for a selection of our deals.

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Posted on 15th April 2019 at 11:54 AM

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