If you would like an affordable way to drive a new vehicle every 2 or 3 years, avoiding MOTs and unforeseen bills, then leasing a car might be the best option for you. You will benefit from the latest models, technology & safety features.

With no residual risk and no hassle of having to dispose of your old vehicle. Simply hand the car back at the end of the contract and take out a new one.

Leasing on a Business or Personal contract is becoming ever more popular due to the flexibility and low risk.

As we move to an electric mobility future, the funding options will too. 

Business Contract Hire is available to Limited Companies, Sole Traders or Partnerships.

Contract Hire agreements allow you to hire a vehicle for an agreed monthly cost, over a specified mileage and period of time. Additional services like Maintenance and Accident Management can be added to the agreement for a complete package.

By paying a fixed monthly rate you remove the risk associated with residual values (the predicted value of the vehicle at the end of the contract), fluctuating interest rates and unplanned maintenance expenditure. Contract Hire is currently treated as being off balance sheet for accounting purposes.

If you are a VAT registered business, 100% of the VAT on the monthly rentals may be reclaimed where the vehicle is either a van or a car used soley for business purposes. Where the vehicle is used for business and private mileage only 50% of VAT on rentals is recovered.

Personal Contract Hire works in the same way as a Business contract, whereby you get to lease a vehicle for a fixed term and mileage.

By paying a fixed monthly rate you remove the risk associated with residual values (the predicted value of the vehicle at the end of the contract), fluctuating interest rates and unplanned maintenance expenditure.

Personal Contract Hire (PCH) is subject to VAT and presented inclusive of the VAT.

You can choose a “Contract Term” from  2-4 year and choose an annual mileage (normally between 5000 – 40000 dependent on the contract term).

All agreements are subject to credit checks and available if you are 18 years of age onwards.

You will need to have a full UK license and the vehicles MUST have Fully Comprehensive Insurance.

The only thing to be midful of when choosing a PCH is that these are fixed term contracts and leaving them before the contract ends, can make you liable for any remaining rentals due.

The fixed monthly rental cost is calculated from:

• Estimated depreciation (purchase price less estimated residual value)
• Interest costs
• Road fund licence costs
• Planned mileage throughout the contract
• Contract term
• Any additional services (e.g. maintenance, accident management etc)