Personal Contract Hire

Personal Contract Hire is Popular with:

Employees who have taken cash for cars option from their employers or those who want to run a new car reflecting manufacturer support.

How Personal Contract Hire works:

Payment of a single monthly contract hire rental plus the VAT provides all the services that a company car does providing it includes maintenance.

Advantages of Personal Contract Hire

• Fixed payment, which can include maintenance, ensures that there are no unexpected bills.
• Personal contract hire offers potential savings from loss of tax liability.
• Leasing company reclaims VAT on car, which lowers the car financing cost.

Disadvantages of Personal Contract Hire

• Rentals include VAT, which is not reclaimable by client.
• There is no right to purchase at the end of the contract.
• The personal contract hire facility is a personal liability to the hirer in exactly the same way as any other loan.

Summary:

A fully maintained personal contract hire facility can deliver exactly the same benefits as a company provided car for a fixed monthly sum. With a reasonable fuel reimbursement rate from the employer it may be possible to save tax.

Manufacturer support is now relected in this facility providing lower costs than previously.