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?
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
This is what the team at Amber Vehicle Solutions
Pros of PCH:
• You can drive
• 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
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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F: 0845 450 7369
Amber Vehicle Solutions
9A London Road
Amber Vehicle Solutions are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 660869
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Registered Office : Sterling House, 501 Middleton Road, Chadderton, Oldham, OL9 9LY
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