WHO IS CONTRACT HIRE DESIGNED FOR?
Personal Contract Hire is designed for private individuals who wish to hire a vehicle for a period of time and hand it back at the end. This should not be confused with contract hire which is designed for companies and business.

WHAT PERIOD CAN I USE THE VEHICLE FOR?
Contract hire is all about allocating your period of hire at the start of the contract. The usual periods are; two years, three or four years.

CAN I CONRACT HIRE FOR A SHORTER PERIOD?
Yes, Short-Term Contract hire is available in the market place but it is usually provided by specialist companies.

DOES IT MATTER HOW MANY MILES I DO IN THE VEHICLE DURING THE CONTRACT?
Yes, if you exceed your contract mileage then there is a charge involved. This charge is called an excess mileage charge.

WHAT IS AN EXCESS MILEAGE CHARGE?
At the end of the contract period you hand the car back. If you return the vehicle and have exceeded your contract mileage you will pay what is called an 'Excess Mileage Charge.' When entering into a contract hire agreement it is important to be realistic to avoid this charge. Most leasing companies allow you to re-negotiate your contracted mileage if you think you are going to exceed your mileage allowance. Ask for details before entering into the contract.

WHAT IS A TYPICAL EXCESS MILEAGE CHARGE?
Usually a typical excess mileage charge is just a few pence per mile dependent on the size and cost of the vehicle. The cost of an excess mileage charge varies dependent on the vehicle and the leasing company. The cost of an excess mileage charge is usually linked to the purchase price and the drop in value that the car suffers by exceeding the vehicles contracted mileage. Trying to sell a car with a higher mileage can mean a big difference in the vehicles re-sale value. This drop in value has to be taken into account, so an excess mileage charge needs to be invoiced to the vehicle user.

DO I HAVE TO PAY AN INITIAL PAYMENT?
Yes, you will pay an initial rental. It is an initial rental because you are leasing the vehicle. Usually this initial rental is the equivalent of three monthly payments.

CAN I OWN THE VEHICLE AT THE END OF THE CONTRACT?
No, Personal Contract Hire is designed for individuals who wish to hire a vehicle for a period of time and then hand it back at the end of the contract. Personal contract hire is a lease agreement and not a purchase agreement. If yor aim is to own a vehicle the contract hire is not for you.

OWNING CARS & SELLING CARS
A couple of questions that you could ask yourself if you are deciding between leasing a car and buying a car are; can I predict the value of a vehicle that I buy in two, three or four years time? Ask yourself, can I deal with potential buyers who maybe time wasters or could I navigate the alternative by auctioning the vehicle? The process of selling your own vehicle can be difficult and it is not for everyone. So personal contract hire might well be the answer that you’ve been looking for.