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Personal contract hire top tips!

We have put together some top tips to keep in mind when you’re thinking about your next personal contract hire. Leasing made simple!

1) Look out for the BVRLA logo… We recommend that you only use a BVRLA member such as ourselves. All BVRLA members are quality assured and operate under codes of conduct that are specific to this industry. This reassures you that you are dealing with a reputable company that will offer the highest level of service possible.

2) Understanding the contract terms… If you’ve been looking at PCH deals already you’ll be familiar with figures such as 6+35, 9+23, 3+35…but what does these actually mean? This basically explains the payment plan. The first number is the amount of monthly payments you’ll pay up front, so, in other words, the initial rental. The second number is the number of monthly payments you will pay after the initial rental. So, if the contract was 3+35 you would pay 3 monthly payments upfront, and 35 monthly payments after – a 3-year contract. Simple!

3) Got a calculator ready? Time to work out your annual mileage… A contract hire arrangement will specify the number of miles you can drive the vehicle per annum. How much you drive your vehicle will be a key factor when determining which lease deal to go for. So, before you choose, calculate how many miles you travel a year… and be honest with yourself! You will then be able to pick a suitable lease deal which will work for you.

4) And if you miscalculate… be aware of the excess mileage charge! Any mileage over what was agreed will be charged at the excess mileage rate in pence per mile. For example, if the excess mileage rate was 5 pence per mile and you went 1000 miles over your contract, you would be charged a £50 excess charge – don’t worry, this will all be explained clearly in your contract.

5) Is maintenance important? A maintained contract is when you add an additional fixed fee on top of your monthly payments to cover the vehicle's maintenance. This will cover the cost of all routine services, MOT’s, tyres…this will come in handy!

6) Spend some quality time reading your contract…It is very important you read through the terms and conditions of the contract before you agree to anything. If you’re booking with a leasing broker such as ourselves, make sure you understand our role and who you need to contact. Another point to note is that all personal contract hire payments include VAT, and all will include the cost of the road tax for the period of the contract.

7) Don’t forget, you don’t actually own the vehicle…A personal contract hire could be described as a long-term rental. You are renting the vehicle of a finance company so it isn’t yours. So, you might wonder what’s that to you? Well, you can’t modify the car without their permission – you’ll need to speak to them before you fit a tow bar. If you’re thinking of taking the vehicle abroad, you’ll need a VE103 certificate to prove you’re entitled to drive the car in Europe.

8)… So hand it back in good condition at the end of the contract. Leasing companies calculate your monthly cost on the proviso that the car will come back to them in a certain condition. The BVRLA produces a guide to help you understand the difference between fair wear and tear and unacceptable damage. You can request a copy of this from your leasing company before returning the vehicle.

9) Know what to expect when the vehicle is collected. Some leasing companies may arrange a full vehicle inspection and condition report when the car is collected, while others will collect the vehicle and complete a full inspection later at their nominated site. Either way, you should be present when the vehicle is collected, as you and the representative from the leasing company must check and agree on the vehicle’s condition. All 987eadily apparent damage will be noted on the vehicle collection form which you should both sign.

So now that you’re an expert in personal contract hires, why not take a look at some of the AMAZING personal contract hire deals we have on our website CLICK HERE!

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Posted on 8th November 2017 at 10:36 AM

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