What is Personal Contract Hire?
- It is a funding option
- It comprises all of the features and benefits of our corporate contract hire solution
- It is designed purely for an individual but it offers all the same benefits of a corporate contract hire arrangement
How does Personal Contract Hire work?
- Pay a fixed monthly rental fee (plus VAT)
- Use your preferred vehicle over a contracted period and mileage
- Return the vehicle at the end of the contracted period
- Remember that there is no option to own the vehicle at the end of the contract
What are the benefits of Personal Contract Hire?
Making it cost-effective
Producing good results without costing a lot of money
Simply pay a rental fee and then hand back the vehicle in reasonable condition at the end of the agreement
Just make sure that you do not drive more than the agreed mileage
ALD Automotive’s goal is to help you accomplish your tax, cost and environmental objectives. We offer flexible funding options just for you. See how our Funding Solutions can help your business:
1. Contract Hire
With this funding solution, you have to keep in mind that you’re buying a service and not the vehicle itself. A vehicle will be leased for a definite period of time (1-5 years) to include a specific mileage. You just need to stump up the monthly fee.
When your contract ends, all you have to do is:
• Return the vehicle (don’t pay for anything unless you did not complete your fees within the contract)
• Check the vehicle to make sure that it doesn’t exceed the agreed mileage
• Ensure that the vehicle is in good condition
2. Sale & Leaseback
You sell your vehicles to us and then continue to use them afterwards – under the terms of a new finance agreement.
Benefits of selling your vehicle to us:
- You can rapidly generate capital for reinvestment
- It will reduce administrative overheads
- You will be able to avoid risks and responsibilities involved in vehicle ownership
3. Fleet Management
ALD takes care of all the responsibilities associated with vehicle ownership. Fleet management is the perfect option to manage all these accountabilities, in return for a monthly fee and approved consolidated invoicing.
The following responsibilities will be managed by ALD:
- Buying and selling vehicles
- Servicing and maintenance
- Accident management
- Risk management services
4. Contract Purchase
Contract purchase is basically a conditional sale agreement that involves a balloon payment at the end of the contract, giving the individual customer the right to eventually purchase the vehicle for an agreed total cost.
How will you benefit?
- Low initial payment
- Regular fixed monthly rental payments
- No risk in resale values
- VAT payable only on maintenance element
5. Finance Lease
A finance lease is our simplest form of lease. We offer funding for a vehicle without any additional services. Just remember that the full resale value risk is retained by your business.
How does it work?
- You will be required to pay back the whole capital cost of the vehicle, plus charges over a period of time; or
- A balloon payment at the end of the agreement to reduce the monthly rental fees
6. Salary Sacrifice
Salary Sacrifice involves leasing a car from us with strong fleet discounts. This is mostly offered to large corporations. The costs will be reimbursed by employees to their employers through monthly deductions from their gross salary.
Salary Sacrifice includes:
- Road tax
- Breakdown cover
- Motor insurance
ALD Automotive continues to meet your evolving needs by offering a wide range of funding solutions for your business and personal needs. Contact us in our UK office locations today!