personal contract hire?
Scooby Regular
Joined: Aug 2002
Posts: 912
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as it says, you take out a personal hire contract on the car, which is normally for a fixed term period, ie, 3yrs. you have a mileage limitation, the monthly payments are normally "quite affordable", but be aware, there is a "balloon" payment at the end of contract to settle,so make sure that is explained to you and that you can afford to settle it, as who knows what price you get for the motor in 3 yrs, as the idea is, that after 3yrs, you then "part ex" it back in, the ballon payment comes off the price of yours and you start again.
Hope that explains it, but best from the dealer rep in person.
Hope that explains it, but best from the dealer rep in person.
Scooby Regular
Joined: Feb 2002
Posts: 41
Likes: 0
Just to add a little more light on the subject.
Scoobyslut is 90% correct on what she has said, but a "balloon" payment is only relavent if you take a personal contract PURCHASE.
Personal Contract HIRE doesnt carry a balloon payment and at the end of the agreed period the vehicle goes back to the finance company.
the obvious attraction on this scheme is the low initial rental (or Deposit) and fixed monthly outgoings. the payment is calculated on the term of your agreement, and the mileage you expect to do over the term. on a PCH scheme you can also have a maintenance contract built in so there are no scary bills to worry over, but bear in mind the mileage you do compared to the servicing schedule.( After all if you are only doing 10,000 miles per year then you would only need 2 srevices before the car went back! (I would expect you to return the car PRIOR to the 30K service)).
Also with most of the PCH shemes available it is worth making sure whether VAT is included in the rentals, as usually this is not the case.
Hope this helps clear up the minefield that is PCH/PCP.
Cheers
Beech Boy
Scoobyslut is 90% correct on what she has said, but a "balloon" payment is only relavent if you take a personal contract PURCHASE.
Personal Contract HIRE doesnt carry a balloon payment and at the end of the agreed period the vehicle goes back to the finance company.
the obvious attraction on this scheme is the low initial rental (or Deposit) and fixed monthly outgoings. the payment is calculated on the term of your agreement, and the mileage you expect to do over the term. on a PCH scheme you can also have a maintenance contract built in so there are no scary bills to worry over, but bear in mind the mileage you do compared to the servicing schedule.( After all if you are only doing 10,000 miles per year then you would only need 2 srevices before the car went back! (I would expect you to return the car PRIOR to the 30K service)).
Also with most of the PCH shemes available it is worth making sure whether VAT is included in the rentals, as usually this is not the case.
Hope this helps clear up the minefield that is PCH/PCP.
Cheers
Beech Boy
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