Personal Contract Hire (PCH)
Contract hire has always been a popular method of providing motor vehicle finance for companies, but more and more private individuals are realising the benefits of personal contract hire schemes for their car finance. This type of car finance is available to you on a Personal Contract Hire agreement even if you have little or no credit history, adverse credit or bad credit, or if you are currently in an IVA or have been involved in bankruptcy proceedings. If you are setting up a new start company, or have formed a new start business recently then personal contract hire – rather than business contract hire – may be a solution for your motoring needs.
Personal contract hire and contract hire are both very much like hiring a car over a fixed term. You agree to pay a fixed monthly amount over the period of the agreement. When the personal contract hire agreement has ended, you simply hand the car back, leaving you open to start another personal contract hire agreement on another car or walk away. This type of car finance is one of the options currently available to the private individual or to the personal user, including those people who have little or no credit history, bad or adverse credit. Our team here in the office at yourcarchoice.com are experts in finding car finance for clients with poor credit, thus enabling them to drive the car of their choice at a price which they can afford.
The benefits of contract hire and personal contract hire are that there is minimal initial outlay and a fixed monthly payment that is very easy to budget for (this is why contract hire for car finance is so popular with companies – including new start businesses). There are also no depreciation or disposal issues to deal with so the only additional costs are consumables, such as fuel and insurance. With the VAT element included in the monthly figures on a personal contract hire agreement, budgeting for your monthly motor finance costs is clear and easy to understand.
As with other motor vehicle funding schemes (Contract Hire and Personal Contract Purchase – also known as PCP - for example), there are penalty fees payable if the car has covered more than the agreed mileage, or if there is any damage to the car. However, maintenance schemes can be built into the personal contract hire agreement, giving you the assurance that your maintenance costs will be covered for the life of the personal contract hire agreement. Most contract hire and personal contract hire agreements also cover the cost of the road fund licence for the duration of the contract; this payment is included in the monthly rentals and again makes budgeting for your car finance both affordable and simple.
Having a poor credit history, adverse credit or bad credit need not be a bar to finding car finance and using our expertise in the field of providing motor vehicle finance for our clients who have a weak credit record we will be able to help – even if you have been in an IVA or bankruptcy proceedings, or if you are a new start company.
