Personal Contract Hire

Last updated: 14/11/2024

What is Personal Contract Hire?

Personal contract hire is a long-term vehicle rental agreement.

Personal contract hire is a solution for those looking to rent a new vehicle and is becoming increasingly popular as an alternative to purchasing brand new vehicles.

Because of there being no need to worry about the depreciation and value of the vehicle, personal contract hire is a popular alternative to other products like Hire Purchase.

Key features of personal contract hire

Some of the key features of personal contract hire:

• Personal contract hire is the most common form of private car leasing.
• Fixed monthly payments cover the rental of the vehicle.
• The monthly rentals are calculated by taking the following into consideration:
• The cost of the vehicle
• The contract period (24 months, 36 months etc.)
• Anticipated value of the vehicle (how much the vehicle is likely to be worth at the end of the contract)
• Mileage allowance (as chosen by you before the start of your contract)
• Any additional options, such as maintenance contracts
• You never technically own the vehicle. However, this means you do not need to worry about the vehicle’s depreciating value.

Advantages of personal contract hire

Some advantages of using personal contract hire are:

• Fixed rentals for the whole package, making monthly budgeting easier.
• Flexible terms to meet your finance requirements and driving habits – with variable contract duration and mileage terms.
• Maintenance of vehicles can be included in the monthly fees.
• When returning the vehicle at the end of your agreement, you do not need to worry about its depreciation or disposal.

What happens at the end of the agreement?

At the end of the personal contract hire contract, the vehicle is returned to the leasing provider, meaning you are free to hire or purchase another vehicle.

If you have exceeded your agreed mileage, an excess mileage charge will be payable, worked out on a ‘pence per mile’ basis as set at the start of your contract.

How to apply for a personal contract hire

MAF Finance Group works with a large panel of banks and alterative finance providers which enables us to find the best financial solution for you.

If you would like to get a quote or need further information, simply fill in the form and we will contact you. If you want to speak to someone directly you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].