Personal car contract hire, also known as personal car leasing, is a popular way to drive a new car without the hassle of ownership. It works by allowing individuals to lease a car for a fixed period of time, generally between 2 and 5 years, paying a fixed monthly fee for the duration of the contract. At the end of the contract, the car is returned to the leasing company with no further obligations.
This type of car lease is particularly suited to individuals who want the benefits of a new car, without the significant upfront costs associated with outright purchase. Compared to buying a car outright, personal car contract hire is often more affordable, as the monthly payments are typically lower than the repayments on a car loan. Additionally, the fixed monthly payments make budgeting more manageable, as there are no unexpected costs associated with car ownership.
Personal car contract hire is also more flexible than purchasing a car outright, as the individual can choose the length of the lease agreement, and the mileage limit for the contract. Individuals can choose a mileage limit that suits their needs, and if they exceed the limit, they will be charged a fee per mile over the agreed limit. This can be an important consideration for individuals who frequently drive long distances.
To lease a car for personal use, individuals will need to find a leasing company that offers personal car contract hire. There are many leasing companies that offer this service, ranging from well-known national companies to smaller independent businesses. The individual will need to provide details of their income, credit score, and driving history to apply for a personal car lease. If the application is successful, the leasing company will provide a quote based on the individual`s circumstances.
Once the contract is agreed, the individual will make the first monthly payment and will receive the car, usually within a few weeks. The individual will be responsible for maintaining the car, including servicing, insurance, and road tax. At the end of the contract, the individual will simply return the car to the leasing company with no further obligations.
In summary, personal car contract hire is a flexible and affordable way to drive a new car without the hassle of ownership. With fixed monthly payments, individuals can easily budget for the duration of the contract, and the flexibility to choose the contract length and mileage limit makes this option suitable for a wide range of customers.