These are designed for individuals wishing to acquire a vehicle and benefit from business user terms and a low monthly payment.
Employees opting out of their company car or self-employed vehicle owners often use this method of acquiring a vehicle.
There are 2 options in this scheme.
The first is Personal Contract Hire in which case an individual will pay depreciation (calculated on the mileage and length of contract) plus an interest element of the vehicle cost.
There is a fixed monthly payment that can include maintenance and the road fund licence for the period of the agreement.
At the end of the agreement the vehicle is returned to the contract hire company.
The other option is Personal Contract Purchase with this scheme; part of the capital (calculated according to length of contract and anticipated mileage) for the vehicle is paid back, including interest, over a set period.
At the end of the contract period the user has a choice of either giving the vehicle back or paying off the guarantneed future value or balloon and owning the vehicle (the equity left in the vehicle can be used as a deposit towards the next contract or vehicle).
The biggest benefit for either of these schemes is the much-reduced monthly payment compared to Hire Purchase, in other words you only pay for the true monthly cost of the vehicle.
Personal Contract Features:
fleet rates extended to individuals
low initial outlay
low monthly payments
maintenance package available
option to purchase (pcp)
no risk diposal
available to personal users
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