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Leasing for Personal Use

Last post Sat, Sep 06 2008, 11:51 AM by Rudy123. 5 replies.
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  •  Mon, Jun 11 2007, 3:51 PM

    Leasing for Personal Use

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    I'm after some advice re PCP and PCH for personal use.  We are going to be changing our car soon and rather than get a loan are considering leasing.  The car is not a company car and we average around 18,000 miles a year, going to and from work and social use.

     Any advice, experiences would be welcome.

     Cheers

     
    • Post Points: 50

  •  Mon, Jun 11 2007, 8:35 PM

    Re: Leasing for Personal Use

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    Hi.

    Have a look at www.contracthireandleasing.com good site plenty of choice and special offers. Most deals are for 24/36 months, also they usually quote for 10,000 miles per annum so you will pay more for 18,000. do not forget to add VAT to rentals even the PCH rates. Good site for PCP is www.freewaycars.co.uk, it's part of Bank of Scotland, good choice and have good special offers, again watch the mileage on the quotes as can be expensive if you go over the nominated amount.

     

     

     

     

    Ron 
    • Post Points: 11

  •  Sun, Jun 24 2007, 8:33 PM

    Re: Leasing for Personal Use

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    PCP and PCH are very different forms of contracts but do have similarities. PC(H) is a HIRE agreement with no option to buy at the end. PC(P) is a PURCHASE agreement with an option to purchase the vehicle at the end of the agreement at a pre-determined price which is set at the start of the agreement. Almost all providers offer a guarantee buy back on PCP contracts so if you do wish to buy you can at any time or wait until the end of the agreement and pay the final payment.

    You "must" when comparing PCP with PCH include your future Road Fund Licence costs as most leasing providers do not often include this and it will be an extra expense for you to find as you are likely to be the registered keeper of the vehicle and hold the V5.

    As with PCH (HIRE) you are effectively only the user of the vehicle and you must see it as that, it is just like going down to your local car rental company and renting a car for the day, you have no option of keeping it or buying it. Your future Road Fund Licence costs are included within your contract and you will not be the registered keeper only the registered user. 

    If you wish to terminate the contract early many contract companies will quote you a termination figure of 50% of the remaining payments to be made providing it is not within the last 6 months of the contract.

    Whether it is PCH or PCP the contract length is often set by your usual change cycle, annual mileage, particular circumstances and affordability or Special Offer set by the lease provider or leasing broker who often has the best deals. Some vehicles may not be available on a PCP agreement because of the restrictions laid down by the motor manufacturer when offering financial terms to lease providers and leasing brokers.

    If you have NOT opted to include the service maintenance and repairs costs (SMR) within your contract you can take your vehicle to any service centre or independent garage for this work, but to keep it within the full manufacturer’s warranty you MUST ensure that GENUINE manufacturer’s parts are used if items are replaced. It’s worth pointing out also that manufacturer warranties and vehicle recovery packages vary so be careful.  Just because a vehicle has a 3 year warranty doesn’t mean it has 3 years road side assistance or breakdown cover.

    When leasing a vehicle you must understand that it is simply a financial package with options that offers options for the use of a motor vehicle. This does not mean that the leasing provider or leasing broker is responsible for the reliability of the vehicle, as this is the responsibility of the manufacturers and the franchise dealer network. Albeit most leasing providers or brokers will offer guidance and help in most situation.

    For More Reply……

    Your Vehicle Leasing Expert - Richard
    • Post Points: 50

  •  Sun, Jun 24 2007, 8:51 PM

    Re: Leasing for Personal Use

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    Dear Readers

    Notice

    I Richard Brown am not a nominated Expert for Moneysupermarket,  I post replies based on my experience, knowledge and training over the past 30+ years as well as being a Managing Director of my own vehicle leasing business during the past 4 years

    Kind Regards

    Richard
    • Post Points: 5

  •  Tue, Jul 22 2008, 2:42 PM

    Re: Leasing for Personal Use

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    One qualification to this summary is that you can still buy the vehicle at the end of a personal contract hire contract if the leasing company agrees to this. They should give you a purchase price to buy as the driver of the vehicle as all they are going to do is to take it to auction and sell it.

    They should therefore offer you a price to buy based on their forecasted disposal value. It's just that you don't get a guaranteed value at the beginning of the contract. However this will depend on each leasing company.

    Hope this helps.

    • Post Points: 5

  •  Sat, Sep 06 2008, 11:51 AM

    Re: Leasing for Personal Use

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    Hi Personal Contract Hire (PCH) is a relatively new product that has been especially designed for people who are opting out of their company car scheme and who would wish to utilize a company car allowance to finance a new or used vehicle. And Personal Contract Purchase (PCP) is another popular method for private individuals …who want a hassle-free and cost-effective way to finance and maintain a vehicle. there are many leasing companies like FBContracts available which offer really good options for both …personal as well as business use …

    • Post Points: 5