Finance Options Explained: A Brief Guide To Available Finance Options

What is Personal Contract Hire?

Personal Contract Hire offers you a fixed monthly cost alternative method of motoring for a new van or car.

This is a mileage-based contract where you must ensure that the vehicle is maintained (As per the manufacturers recommendations) and the vehicles condition kept to the highest standard for the period of the hire. 

For some customers, Personal Contract Hire is one of the most popular types of vehicle finance. 

That said, In the case of where usage activities are likely to cause extensive damages that devalue the vehicle way – that may not be the case. 

This type of agreement offers a hire period from 2 to 5 Years based on your anticipated mileage request. 

Additional maintenance (or Fully Maintained) contracts are available and can be included within your agreement. (At an additional cost)

This Fully Maintained option can include all vehicle maintenance, service and even tyres for the duration of the contract.

Vehicle Road Tax is also included for the duration of the hire.

Benefits of Personal Contract Hire:

·       Minimal Capital Expenditure

·       Low initial outlay (Initial Rental) - compared to other funding methods.

·       Fixed Monthly Rental Costs – That can be more suitable and affordable for some customers.

·       Contract Periods from 24 months (2 Years) up to 60 months (5 Years)

·       The additional option to add ‘Maintenance’ to encompass a true fixed running cost of your vehicle

·       No risk of vehicle depreciation – The finance company collects and arranges the disposal of the vehicle at the end of the agreement.

·       On-going advise and customer support during the agreement.

·       Optional maintenance package available (Some inclusive of vehicle tyres).

·       Optional breakdown rescue cover and replacement vehicle cover available.

Concerns of Personal Contract Hire:

·       Extra care needs to be taken when estimating the term of the contract and the anticipated mileage (Excess mileage over the agreed contracted mileage will be chargeable - per mile) *this will be identified on the quotations and all finance documentation.

·       You are unable to own or purchase the vehicle.

·       The charges and costs for early termination can be costly.

·       Damage to the vehicle or failure to maintain the vehicle will result in additional charges at the end of the contract by the finance company.

·       ‘Fair Wear & Tear’ for the vehicle is accepted (As per the ‘Fair Wear & Tear Guide’)

 

Running Costs:  

The running costs for the vehicle are your responsibility, please take this into consideration when looking at Customer Maintained Personal Contract Hire. Maintenance, Servicing and ‘Wear & Tear’ of the vehicle is your responsibility.

To ensure you get the very best advice, you should seek professional guidance to ensure this type of agreement would be suitable and affordable.

Any agreement for vehicle funding will be completed without advice and based on your explicit instructions.

New Vehicle Solutions Limited does not and will not charge any fees for providing any Consumer Credit services. 

You must be 18 or over and finance is subject to status. We can introduce you to a limited number of finance companies, a commission may be received.

Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future.

New Vehicle Solutions Ltd is authorised and regulated by the Financial Conduct Authority, our firm reference number for consumer credit is 685872 New Vehicle Solutions Ltd is an Appointed Representative of AutoProtect (MBI) Limited which is authorised and regulated by the Financial Conduct Authority for Insurance Mediation, their reference number is 312143. We are a credit broker and not a lender.

We are permitted to conduct Credit Brokering, Debt-Adjusting and Debt-Counselling in connection with the whole or partial settlement of credit agreements for vehicle finance and consumer hire agreements

You can check this on the FCA Register by visiting the www.fca.org.uk or by contacting the FCA direct on 0300 500 8082

Company Registration Number: 8572112 – VAT Number: 166595858 Registered Office: New Vehicle Solutions Ltd, Tremains Road, Bridgend, CF311TZ

New Vehicle Solutions Limited does not and will not charge any fees for providing any Consumer Credit services. 

Some of our lenders may charge an administration fee to set up your agreement. 

New Vehicle Solutions Limited typically receive a commission or other benefits from finance providers should you decide to enter into an agreement with the finance provider we have introduced you too. Such commissions or benefits are variable depending on the finance provider, Type of contract and term of agreement and are not affected by rates of interest on the loan. Any renumeration amounts can be requested and disclosed prior to the conclusion of the transaction.

You can check this on the FCA Register by visiting the www.fca.org.uk or by contacting the FCA direct on 0300 500 8082

Calls may be recorded for training and monitoring purposes. 

Last Update: 21/01/2021