 |
|
|
|
Contract hire
A vehicle is leased for a set amount of time, for a set monthly fee and an agreed mileage. Maintenance and servicing is often included and the car is handed back at the end of the lease.
|
|
|
Who typically contract hires?
Contract hire is very popular with sole traders and small businesses and company car drivers who are used to a minimum amount of hassle.
|
|
|
|
|
Leasing
Unlike contract hire, the responsibility of the car's upkeep - servicing and so on - is with the driver, or his/her company. The car also may be bought at the end of the lease.
|
|
|
Do companies get financial benefits?
There are advantages for VAT-registered companies, who can reclaim 50% of the VAT on a contract hire deal and 100% of the VAT on a maintenance deal.
|
|
|
|
|
What are Personal Contract Hire (PCH) and Personal Contract Purchase (PCP)?
They are the names of the main contract hire and lease options available for private individuals.
|
|
|
What about insurance?
Insurance is always the responsibility of the driver.
|
|
|
|
|
Who typically leases?
Leasing is more popular with private individuals who like the security of paying fixed monthly rates, but are happy to maintain the car themselves
|
|
|
How long are the contracts?
Most contract hire and leasing plans are for two to four years.
|
|
|
|
|
Want to know more?
Everything you need to know about contract hire and leasing is in our feature '10 things you should know.'
|
|
|
|
