What is Personal Car Leasing
What is Personal Leasing?
Personal Leasing is an agreement that provides you with the use of any vehicle for a selected period of time at a series of fixed monthly payments. Personal Leasing is growing in popularity in the UK and is already the norm in America, with prices becoming increasingly competitive. Personal Leasing allows you to avoid the hit of depreciation as all risk is taken by the Finance Company who own your vehicle through the duration of the contract. It is for many people the most cost-effective and hassle-free way to drive a new car.
What is Personal Contract Hire?
Personal Contract Hire is the most common form of Personal Car Leasing and often acts as the overarching term for the process. Personal Contract Hire, like all forms of leasing, gives you the opportunity to drive a brand new vehicle at a fixed monthly payment over an agreed duration (usually either 24,36 or 48 months). You will also be required to pay an initial payment usually the equivalent of 3 or 6 monthly payments, but this is largely customer specific. At the end of your contract, you simply hand the keys back to the finance company.
What is Personal Contract Purchase?
A Personal Contract Purchase or (PCP) is another common form of leasing. PCP works in a similar way to Personal Contract Hire in that you pay an initial payment followed by a series of fixed monthly rentals over an agreed term. However, at the end of your contract you will have the option to purchase the vehicle for a cost based on its residual value.