To enter into a Personal Contract Hire agreement (PCH) you commit to a fixed contract term of between 1 and 4 years and agree ton pay a set monthly charge for use of an up to date private car. You don't own the car and your monthly payments should work out less than buying the same car outright by traditional loans or HP agreements.
Private individuals who opt for a contract hire / car leasing arrangement are entering a legal agreement for 2, 3 or 4 years, in most cases. This variety of timescales gives flexibility for you to match a contract to your exact financial position and personal circumstances. The contract helps you to eliminate the financial risks and sheer inconvenience of finding a new owner or properly disposing of the car when you have finished with it. Many leasing contracts can actually be prolonged beyond the end of contract date if you happen to really like the car. Whatever questions you may have about LVS' car leasing deals, just ask, we pride ourselves on customer service and our ability to answer any questions to assist you in making a well informed choice when you need to renew your car.
PCH agreements arevery similar to those offered to businesses. Both are based predicting a realistic annual mileage figure that honestly reflects your likely driving habits. This is agreed at the start of each contract.
To get started, review your driving habits over the past year or so and try to form a picture of what might change if you have a more reliable and economical vehicle. Once you have arrived at a realistic mileage figure and have reviewed some of thew car models you are likely to be interested in, it's time to ask us for a quotation. Once we have all that information, our sales team can generate a lease quote for you.
Mileage amendments after contract hire agreements are live can be arranged, though the rules and regulations vary between funders with some being rigid about sticking to the original terms and others putting a significant premium on changes. For this reason alone it is well worth the effort to be as realistic as possible about your mileage predictions. Going over the agreed allowance can land you with hefty excess mileage charges.
We stress again the importance of estimating your annual mileage carefully as one of the benefits of contract hire is predictable motoring costs... this will be undermined if you leave yourself vulnerable to these excess mileage charges. A budget for maintenance can be built into your monthly payment quite easily. Even the best new models from the most trusted manufacturers suffer occasional surprising niggles and breakdowns. Your new car warranty will cover most of these and adding a maintenance element to the lease agreement will cover any servicing, routine maintenance, batteries, tyres or exhausts that prove necessary during your your tenure as the keeper of the car!.
Don't forget you have to arrange fully comprehensive insurance for your new car. That is the legal responsibility of the person named in the Contract hire agreement. Importantly, it is expected that the vehicle is returned to the lessor in good condition. Make sure that you understand the expectations set out in the guidelines for 'Fair Wear and Tear', before you enter the contract, even though a copy of the guidelines is made available to customers near the end of their PCH contract.
By starting a personal car contract fully informed you will have the nearest thing there is to stress free motoring in a modern, safe and reliable car. At Lakeland Vehicle Solutions we have come to understand just how important that is for peace of mind in the rush of this modern world!
* All vehicle images and car descriptions on this site are for illustration and reference purposes only and are not necessarily an accurate representation of the vehicle on offer.
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Lakeland Vehicle Solutions
Clawthorpe Business Centre
Burton in Kendal
Lakeland Vehicle Solutions are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 712728
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Registered Office : Lakeland Vehicle Solutions Ltd, c/o Meiring CCA, Unit 1 Strands Barn, Strands Farm Lane, Hornby
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