Personal and Business Contract Hire

Personal Contract Hire

Personal Contract Hire (PCH) is a straightforward hire agreement for private individuals. With this finance plan the option of hiring a new vehicle rather than ultimately owning it means there is no need to worry about depreciation or selling, you just simply pay the fixed monthly rental over the term of the agreement.

At the start of an agreement you simply choose an initial rental in advance, this keeps your monthly payments lower to suit your budget, your contract term usually between 18–60 months, and an agreed predicted annual mileage.

With a Contract Hire agreement, you can even choose to include your vehicle maintenance costs and service expenditure including brakes and tyres, reducing any of those unexpected costs.

At the end of your agreement you simply return the vehicle with nothing further to pay, providing the vehicle has not exceeded the agreed annual mileage and is in good condition.

Why choose Personal Contract Hire?

  • Low initial deposit
  • Road Fund Licence included for the duration of your agreement
  • Fixed monthly rentals during the term for ease of budgeting
  • No depreciation risk at the end of your agreement
  • Optional service and maintenance package 
  • Flexibility to change your contract mileage during the agreement

For further information or to discuss how Chatsbrook can help you please contact us here.

 

Business Contract Hire

Business Contract Hire is a cost effective way for companies and individuals registered for VAT to fund any number of business vehicles.  With this funding method the option of hiring a new vehicle rather than ultimately owning it means there is no need to worry about depreciation or selling, you just simply pay the fixed monthly rental over the term of the agreement.

As a VAT registered business you can reclaim up to 100% of the VAT element on your rental and any related maintenance charges providing there is no element of private use.  If the vehicle is for mixed private and business use the VAT you can reclaim reduces to 50%

At the start of an agreement you simply choose an initial rental in advance, this keeps your monthly payments lower to suit your budget, your contract term usually between 18–60 months, and an agreed predicted annual mileage.

With a Contract Hire agreement, you can even choose to include your vehicle maintenance costs and service expenditure including brakes, reducing any unexpected costs.

At the end of your agreement simply return the vehicle with nothing further to pay, providing the vehicle has not exceeded the agreed mileage and is in good condition.

Why choose Business Contract Hire?

  • Low initial deposit 
  • Fixed monthly rentals during the term for ease of budgeting
  • Road Fund Licence included for the duration of your agreement
  • Optional service and maintenance package 
  • Flexibility to change your contract mileage during the agreement
  • VAT reclaimable
  • 100% of the VAT is reclaimable on commercial vehicles or cars when used purely for business
  • 50% of the VAT is reclaimable on cars when used for private and business use
  • 100% of the VAT is reclaimable on the maintenance contract regardless of use
  • Off Balance Sheet Funding - your agreement acts as purely as a business rental cost
  • No depreciation risk at then end of the agreement 
  • Fleet management service 

For further information or to discuss how Chatsbrook can help you or your business please contact us here.