Personal contract hire

[jbyrnes82]

Have been doing some research into this method of getting a vehicle, now I know its not everyone's cup of tea but as someone who likes to change cars every 2 to 3 years then I'm considering it.

 

Anyone got any recommendations for companies to use for good deals?

[themacster]

Jet Vehicle Finance; Fleetprices - both seemed to have the lowest prices when I was looking a few weeks ago

[lostp]

Use a screenscraper like www.contracthireandleasing.com and compare

[ExpatHotspur]

I'd ask you this. If you have the choice (as I do, coincidentally), why would you choose a contract hire. If one could get a decent rate of interest on his/hers ISA, I'd say save my capital, and get contract hire, but that isn't the case currently is it. This made my mind up for me, but everyone is different

[DarrellGB]

Contract hire gave me the flex ability I needed, inc maintenance and tyres and you're all set in terms of outgoings for the duration of the contract.

The deal I have will allow me to buy it out at the end and sell on leaving me 2-3k equity to play with. I'll just get another car on lease and do the same again.

[JJBS3]

I found 'Days Contract Hire' to be pretty damn good - though mine was a business lease, rather than personal.

[jbyrnes82]

Thanks for the replies, all useful info

 

With regards to ExpatHotspur, I see your point but I'm looking at contract hire monthlies some up to £80 per month cheaper than im getting on pcp as we change cars 2 - 3 years it looks an attractive way to get a new motor, yes I don't get free servicing deals but that is sort of offset by the fact im not having tax the vehicle either so one balances the other there (well nearly)

[pipsyp]

Be careful with personal lease (not PCP). It seems great on the surface but there are a few downsides.....

If you need to move the car on early in the term there will be a steep exit fee, sure you can face a similar situation with PCP (negative equity) but usually within a year the value of the car there or thereabouts matches what it owes and is easier to walk away from...also with a PCP if you have to 50% through the agreement you can voluntarily terminate the agreement and hand the car back at no cost (so long as the car is in good condition and has not exceeded it's mileage quota).

The initial payment on most decent lease deals is often 6 months up front which is a lot of cash to part with for something you'll likely never own.

You'll get penalised heavily for any damage that is evident upon handing the car back; our view and finance companies view of genuine wear and tear often being two completely different things.

Also (and probably the worst part) the excess mileage on most lease deals is about 25p/mile.....on a VWFS solutions deal it's only several pence (can't remember the exact figure but it's much much lower).

Lease deals work well if you keep the car to end of term, look after it and have no risk of going over the mileage allowance....otherwise PCP is generally a much better bet as you benefit from the good aspects of purchasing a car as the arrangement is much more like a HP agreement just with the added freedom of getting out of the car and walking away at the end of the term.

Edited 24 September, 2014 by pipsyp

[Yogi-Bear]

@pipsyp - I was just about to post pretty much the same thing.

 

If you know your circumstances won't change, and you can definitely stick to the agreed mileage (some offer the opportunity to change once during the term, I think), then contract hire / personal leasing can be an effortless way to 'own' a car and enjoy fixed price motoring (assuming you do take out service / maintenance / tyre cover etc. with them).

 

On the flip side, it can end up a lot more expensive if for whatever reason you do need to make any changes.  Also, don't ever lease for less than 3 years... if you do it over 2 then a lot of what you're paying for is simply depreciation.  The curve starts to flatten out after 24 months.

 

And finally, as I've found out, when a lease comes to an end, unless you're taking another one with the same company and they will let you keep the car until your new one is ready, then you've got the real hassle of trying to get the timing right - I've ended up paying for two cars for a couple of months because my BMW is a lease (salary sacrifice company car), which in my situation is better than ending up without a car for a couple of months, but it's still not exactly ideal.

[themacster]

I've gone for a 1+47 deal on my new Mk3 ordered earlier this month (personal contract hire) including maintenance - it works out the same total amount paid over the four years as a 3+47, 6+47 or 9+47, just the monthly payments are slightly higher to compensate for the lower initial payment. I'd rather have the extra upfront money in my account now earning interest. Excess mileage is 8p/mile.

[jbyrnes82]

some interesting points to consider especially regarding excess mileage, thanks for the info its always nice to get pros and cons from those who've 'worn the t shirt' 

[kewe]

I'm using First Vehicle Leasing for mine and they were absolutely brilliant. Could not fault them whatsoever and had my VRS TDI less than 3 weeks after ordering.

I have it over 2 years because I get bored quickly and wouldn't want to keep a car any longer than that.