Ask Drivespeed Leasing
What is Personal Contract Hire?
Personal Contract Hire is a long-term rental agreement giving you the exclusive use of a car or van for a set time for a fixed monthly payment. It is often a cheaper alternative vehicle funding option than the more traditional routes of a bank loan or dealer finance.
You have complete freedom of choice over your vehicles make, model and specifications (colour, trim, in-car technologies etc.) and your contract is tailored to suit you in terms of your estimated annual mileage, the length of the contract and how you’d like your payments to be structured.
Who is Personal Contract Hire (PCH) for?
PCH is for people who want a way of driving a brand-new car on a regular basis but who can’t always afford to buy. It is also for those of us that don’t want to worry about the effects of depreciation that inevitably comes with owning a brand-new car. As you technically never own the vehicle – it remains the property of the finance company - you never need worry about the vehicle’s depreciation.
What are the benefits of PCH?
ü Fixed costs – meaning it is easy to budget, with no surprising costs.
ü Convenience - You can add an optional fixed cost maintenance package to your monthly rentals which covers regular servicing, replacement tyres and other consumable parts giving peace of mind and reducing unexpected bills. (for more information, please see the separate Maintenance question)
ü A brand-new car every 2,3 or 4 years
ü Full Manufacturer’s Warranty, Annual Road Tax and Breakdown Cover included in monthly rentals.
ü No worries about the impact of depreciation when it is time to upgrade your vehicle
What is the optional Maintenance package?
For a fixed monthly rental that protects you from the rising costs of servicing, you can benefit from a maintenance package that safeguards your vehicle against any unexpected issues, regular scheduled servicing and MOT’s (if applicable)
You also have the peace of mind knowing that any work on your vehicle will be carried out by qualified technicians at accredited service centres.
ü Mechanical and electrical repaired or replaced as necessary including all labour costs
ü All Manufacturers scheduled servicing and MOT’s (if applicable)
ü Replacement of any perishable item such as bulbs, wipers, batteries, exhaust etc
ü Replacement tyres where tread depth is less than 2mm (legal limit for MOT is 1.6mm)
*Please speak to one of our advisors for further information on what is covered under a maintenance plan
Why should I lease a car instead of buying one?
Leasing or contract hire has always been a popular way of running a car for businesses, however, due to heavy depreciation and the unexpected and ever-increasing repair costs associated with car ownership, more and more private individuals are looking at the option of leasing.
Acquiring a new car through a PCH agreement means you can replace it every 2, 3 or 4 years. You just hand the car back at the end of the contract and take out a new one, avoiding the hassle of having to sell your old car privately or the disappointment of a low part exchange value. The added inclusion of a manufacturer’s warranty, annual road fund licence and breakdown cover gives you complete peace of mind.
I can't see the exact model I want, what do I do? Can I add options to the car?
We can offer highly competitive quotations on most makes and models. We can also help you build your own car to your requirements. If you can’t find your exact requirements, please give us a call on 0345 222 6352 or email us at email@example.com where one of our advisors will be able to assist.
Are the cars you supply brand new?
Yes, all the vehicles we supply are brand new unless stated otherwise. At times there may be particularly strong offers on pre-registered vehicles (registered by a certain date to attract extra manufacturer support) but these would still be regarded as brand new. We would of course ensure you were made aware if your chosen vehicle was pre-registered
Where do the cars come from and how do I get it?
All our vehicles are sourced and supplied from a national network of franchised main dealers.
Once your vehicle has received its Pre-Delivery Inspection (known as a PDI) at the supplying dealership, the dealer will register your new car with the DVLA so that we can provide you with your new registration number enabling you to set up your insurance
Delivery is completely free of charge to your home or place of work providing that the delivery address is situated on the UK Mainland and can be arranged to be at a pre-arranged time and date to suit you.
What do you mean by Payment Profile and Contract Length?
The payment profile indicates the amount of monthly payments required as an upfront payment. This is often called the initial rental. This payment is normally taken from your bank account within 7-10 days of you taking delivery of your new vehicle.
You will then make regular monthly rental payments for 23, 35 or 47 months depending on the length of your contract.
The higher the initial rental the lower the monthly payments and vice versa
How are the miles per annum calculated?
We pre-agree your mileage with you when you take out the contract. Depending on the finance provider the mileage bands can range from anywhere between 5,000 miles per annum to 30,000 miles per annum.
If you exceed the pre-agreed mileage, an excess mileage charge will apply. These figures will be provided on your quotation and official finance documents, so you are fully aware before entering into a contract. We recommend you consider your current annual mileage and if you think you will cover approximately 12,000 miles per annum you should go for that choice rather than being overly cautious and going for 15,000 miles to be on the safe side. Remember, you will not receive a rebate if at the end of the contract you are under your mileage limit
What is your processing fee for, what does it cover?
We charge a one-off processing fee that enables us to cover the costs incurred for processing the lease agreement, produce the relevant vehicle documentation and reserve the vehicle in your name. Motorplan charge a processing fee of £199 (incl. VAT) for our services.
What sort of insurance do I need?
You’ll need to have fully comprehensive insurance on your car for the duration of the contract.
What happens when I need to renew my car lease?
At the end of your contact, it is time to upgrade your car to a new one so that you can get something that suits your ever-changing lifestyle
It is important that you get in touch with us before the end of your contract so that we might help you understand what you need to do but as a general guide it is good practise to review your lease providers “Fair wear and tear” guide, locate all keys, and check if your vehicle needs an MOT before its return.
We will of course be in contact with you at least six months before the end of your contract to start discussing your replacement options
Can You Supply Business Fleets?
Yes, we do supply cars for business fleets. Whether a business is looking for an individual vehicle or a collection of different cars, our staff can help. Whilst the cars may be part of a fleet, they are treated as individual cars throughout the process. This means you must choose a deposit, how long you wish to lease them for, and what the annual mileage allowance will be for each car.
Where can I find FAQs on the Arval Total Care package?
You can find them here.
What happens when I return my vehicle at the end of the contract?
You can read the BVRLA fair wear and tear guide here