A1 SPORTBACK25 TFSI Technik 5dr
Can’t find what
your looking for
Thursday 24th December – 8.30 – 2.30pm
Friday 25th December - CLOSED
Boxing Day (Saturday) - CLOSED
Monday 28th December - CLOSED
Tuesday 29th December – 9.00 am - 4.30pm
Wednesday 30th December – 9.00 am – 4.30pm
Thursday 31st December – 9.00 am – 4.00pm
Friday 1st January- CLOSED
Monday 4th January – 8.30am – 8.00pm
Personal Car Leasing & Contract Hire
What do you need to know about the fastest growing market in the UK
Whenever I speak with friends and family about vehicle leasing (after we’ve finished arguing about which film from The Lords of the Rings trilogy was best – the correct answer is all of them!), it is apparent that there are a few misconceptions. Primarily that there is only one, heavily-slandered, type of lease agreement. There are actually a few and they vary considerably; some will match what you are after and some won’t be as suitable.
So, let’s look at the most popular form of vehicle lease agreement – Personal Contract Hire.
Personal Contract Hire, also referred to as Personal Leasing or abbreviated to simply ‘PCH’, is a form of leasing agreement designed for individual consumers. Contract Hire works like a long-term rental agreement. You simply rent a vehicle over a set number of years (measured in months – i.e. 18, 24, 36, 48 etc.) and then the vehicle is collected at the end, freeing you from having to sell the vehicle at a heavily reduced rate compared to what you spent on it brand new (depreciated value).
The concept is simple enough:
That is a great question and I’m so glad you’ve asked it. You will always have to consider if a financial product is a good match for your needs and circumstances.
Allow me to highlight some of the key benefits and features of a PCH:
A1 SPORTBACK25 TFSI Technik 5dr
£156.00 inc VATInitial Rental: £1,404.00 inc VAT
A3 SPORTBACK30 TFSI S line 5dr
£215.00 inc VATInitial Rental: £1,933.00 inc VAT
CLA COUPECLA 250e AMG Line Premium 4dr Tip Auto
£312.00 inc VATInitial Rental: £2,808.00 inc VAT
GLC DIESEL ESTATEGLC 300de 4Matic AMG Line 5dr 9G-Tronic
£430.00 inc VATInitial Rental: £3,866.00 inc VAT
E-TRON SPORTBACK230kW 50 Quattro 71kWh Black Ed 5dr Auto [C+S]
£546.00 inc VATInitial Rental: £5,011.00 inc VAT
Look at you with another great question! You are on a roll! A very mature and responsible question, you should always think about whether a financial product is right for you, by looking at its drawbacks.
With a Personal Contract Hire agreement, some points to consider would be:
What happens at the end?
We will contact you around 6 months before the end of your contract to discuss what you would like to do. You can then either choose to extend your current vehicle for a small amount of time (subject to eligibility and the Funder’s Terms & Conditions) or to look at your next brand new car.
Regardless, at the end of the contract, the car will be collected by a collection agency working on behalf of the Funder. The driver will analyse and record any damage to the vehicle, in line with the BVRLA’s Fair Wear & Tear Guidelines. Any damage that falls outside of these guidelines will be deemed chargeable to you.
The car will then be taken away and your contract will expire, releasing you to receive your next beautiful brand new vehicle.
What is Residual Value?
Some of you curious cats will have been looking at that last point and thinking “what is a residual value” and you may have been feeling silly for not knowing. Well, worry no longer!
Residual value refers to how much an item is worth after a period of time has elapsed. Cars are well known for being depreciating assets – this means that their value will only decrease. This usually happens at what I can only describe as an inversely-exponential rate. Similar to going on a diet – you start off losing lots of weight very quickly, this rate of loss eventually slows down and you begin to plateau and only lose small amounts of weight.
Cars will lose a lot of their value very quickly. Some cars turn their noses up at fad diets and hold on to their value very well… particularly high-end limited edition vehicles – but all of the more mainstream vehicles will hit the salad bar and shed their value quickly.
With Contract Hire, the total cost of your monthly rentals is roughly calculated like this:
(Vehicle Purchase Price) – (Residual Value) = Total Rental Cost with the total rental cost being divided up by your chosen ‘payment profile’.
Fill in your details below to get your free copy