Leasing comes with low monthly payments. This allows people to drive good-as-brand-new cars without spending too much. Vehicle leasing companies, such as ALD automotive, offer flexible and reliable leasing options to their customers. One of them is the Personal Contract Hire.
What is Personal Contract Hire?
A personal contract hire is an agreement that allows a person to use and take control of a car for a specific period of time. The car will be used by the person who secured the contract hire deal but the ownership or the title of the vehicle will remain with the company. The agreement requires a fixed monthly instalment to be paid until the contract ends. When the contract expires, the vehicle must be returned to the leasing company.
The monthly payments are computed by deducting the estimated Future Value of the car (residual value) from its Current Value (Market value). The difference will be divided into months. The vehicle leasing company will ask you to stick to a certain mileage limit — anything in excess could lead to a penalty.
Advantages and Disadvantages of Personal Contract Hire
The advantages of personal contract hire (PCP) include:
- A fixed monthly payment – there is no extra nor hidden charges. The monthly payment stated on the contract is fixed, unless there is a breach of contract. This allows the lessee to budget their income.
- Low down-payment – personal contract hire only requires the client to pay three months in advance.
- Road-tax exemption – road tax is included in the monthly payment.
- It is cheaper – personal contract hire is cheaper than a bank loan.
- Maintenance – some vehicle leasing companies offer maintenance packages that can be included in the monthly payments.
- The lessee will return the car after the contract – therefore, there is no need to worry about depreciation or maintenance of the car at the end of the term.
- The lessee can have access to luxury cars – the monthly payments are based on the FUTURE and CURRENT market value of the car. Luxury cars depreciate at a slower rate. As such, the difference in value is small, resulting in a low monthly payment.
Personal contract hire can be beneficial to a lot of people – especially to those who cannot afford to pay cash for a luxury car. ALD automotive offers flexible a personal contract hire that can suit your budget. We also offer a variety of finance options for you and your company. Yes, getting a new car has never been so easy!
Call us on 087000 111 81 for enquiries. You may also reach us online by completing the contact form.
There are numerous advantages to be had by enrolling on a driving course. Let’s identify them one by one.
- More Efficient and Practical Driving
A driving course can teach you different driving mechanics, vehicle information and also economical tips on reducing fuel costs. Some of these points include successful parking tips, when to change gears in manual cars and how to accelerate without wasting fuel. This can also help you avoid damaging your vehicle because of driving mistakes. You will also be taught the functions of the different parts of the vehicle and be given some simple tips that can help you, such as when to change the engine oil or how to avoid overheating a car during long drives.
- Avoiding Road Violations
As the old saying goes, ignorance of the law excuses no one. Some drivers commit road violations simply because they are not aware of the rules. The good thing is that road signs and traffic rules in the UK are usually discussed in driving courses. This can help you avoid committing road violations that require costly fines and other sanctions.
- Improved Driving Attitude
Attitude can also affect your way of driving. This is why there are driving courses that also incorporate certain road scenarios in their lessons. They tell you what to do in cases such as another driver bumping your car. This kind of information can help increase the patience level of a driver and steer them away from bad driving behaviour.
- Safer Driving
Driving should be both efficient and safe. Being a defensive driver does not mean you have to practice slow driving. It means being attentive, careful and disciplined at all times – no matter how fast you drive. Driving courses give tips on how to become a defensive driver to prevent vehicular accidents.
ALD Automotive extends ‘Better Driving’ courses in their fleet management services. We believe that being knowledgeable about the driving ‘do’s and don’ts’ can help you steer away from vehicle damage or malfunction. Be a better driver by enrolling in our driving courses. Call us on 087000 111 81 for more details.