Personal contract purchase often used by Company Car Drivers looking to opt out of their employer’s car scheme but who would like the opportunity to own the vehicle at the end of the agreement. The “option to purchase” end of contract arrangement provides a hedge against the value of the vehicle dropping below the final payment due to unforeseen circumstances. The customer acquires the vehicle by paying fixed monthly instalments and have the option of retaining ownership or hand back the vehicle at the end of the contract.

The first year Road Fund Licence is included (thereafter the customer pays for the Road Fund Licence) whilst maintenance and AA cover can be added to the contract if desired.

Personal contract hire is a recent innovation that allows the general public to enjoy the benefits that come with owning a large fleet. The obvious advantage to the driver is that the car is simply returned to the hire company at the end of the agreement, hopefully exchanging it for a new one! If desired servicing costs can be built into the contract for total budgeting and peace of mind.

Hire purchase is still used by many clients who prefer it’s traditional unfussy approach to a loan. Often taken out over 48 or 60 months it spreads the payments so that a customer benefits from a fixed monthly outlay as well as being flexible as it can be terminated at any time through the life of the agreement.