An Insight into Contract Hire Car Deals

Want to enjoy the long weekend drives with your children, family and friends? Who does not like to?

However, the huge expenditure associated with buying cars often discourages a lot of people from giving shape to this dream. What’s more, additional expenses including road tax, service and maintenance costs and others burden the pocket further. This is why people often settle down for other more convenient and inexpensive means of transport.

Car Leasing — A Boon

Fortunately, the car leasing industry provides the best of both worlds.

Neither do you have to pay a hefty amount for buying the car, nor do you have to use other means of transport. You can drive your own new car (one of your choicest color and make) in return for a rental amount. What’s more, you need not bother about the car’s resale after a few years. Moreover, you can enjoy driving another new car after the completion of the first lease deal.

Thanks to these benefits, the car leasing industry has witnessed a significant growth in the recent past. However, the many terms like car leasing, contract hire deals, personal contract hire etc. leave people confused.

Types of Car Leasing

Here are the answers to some of the common questions about car leasing and contract cars.

Contract Hire deals is nothing but a type of car leasing.

Commonly, there are six main car leasing options, including business and personal car leasing.

Business car leasing options are:

• Contract Hire
• Finance Lease
• Lease Purchase and
• Contract Purchase

Personal car leasing options are:

• Personal Contract Hire and
• Personal Contract Purchase

Contract Hire Deals in Detail

Contract Hire; both business and personal is a popular means of financing a car lease. Here, the monthly payment is fixed, so you can accommodate for the same in your monthly budget. As the contract cars are returned to the leasing company after the lease period, the financial risk is also eliminated. However, you need to maintain the car properly through the contract period. Well; some contract hire deals include the service and maintenance charges incurred during the contract period. They often include the road tax too, thus, ruling out the need for any additional expenditure apart from the fixed monthly payment. However, you would be required to pay for any additional mileage over and above the limit specified in the contract.

Contract Hire is for businesses. PCH (Personal Contract Hire) is the equivalent of this for personal use. Both Contract Hire and Personal Contract Hire are attractive leasing options with innumerable advantages as seen above.

Eligibility for Contract Hire

However, there are certain criteria you need to meet to qualify for Personal Contract Hire Car deals.

• You must be of 18 years of age or more.
• You must have a valid UK driving license.
• You must have an employment history of three years or more.
• An attractive credit rating

With the appropriate information of Contract Hire deals, you can make your weekends fun-filled and enjoyable; driving around in your new car.