Personal Contract Hire, as its name suggests, is
essentially the same as Contract Hire but for private individuals. If you
want fixed cost motoring, or have opted out of a company car scheme then
Personal Contract Hire could provide you with hassle free motoring without
the residual value risks associated with traditional ownership.
VAT is not reclaimable by private individuals. Maintenance
packages are usually available at an additional cost so that you can have
totally fixed costs for your motoring.
view a sample of the deals currently available
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Similar
to hire purchase, lease purchase
offers greater flexibility, with
repayments structured around your
business's cash flow situation.
After
the initial deposit, repayments
are made monthly and a percentage
of the original cost of the car
can be deferred to the end of the
agreement, as a 'balloon' payment.
A 'balloon' payment is a final
lump sum, which is based on the
car's estimated future value.
You can make the balloon payment
and keep the car - or part
exchange it, using any surplus
amount after making the final
repayment, towards a deposit on
your next vehicle.
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