Contract Hire and Leasing Options For Car Finance

Car Finance

Do you need a vehicle for your business? Ever considered a Contract Hire or Lease Deal?If you are thinking of leasing or using contract hire to fund your new vehicle then you have come to the right place.  We have a team of qualified and professional staff to offer you excellent value for money leasing and contract hire offers and after sales support and full affiliations from the markets leading motor manufacturers. Plus, we’re a one-stop shop for your contract hire needs.

There are just two simple steps to take when buying a car on finance.  The of which is to decide on the deal type which fits your requirements and lifestyle.  We have taken a look at the 4 most popular deals available on the market today, and have simplified them, in order to help you to make an informed decision as to which one is the deal best for you.

Car Finance

First let’s look at Hire Purchase (HP).  This is one of the easiest ways to purchase a car. You pay a typical deposit of 10%, followed up with fixed monthly installments.  The car is yours once you have made your final payment and fees to transfer the ownership of the car.  Until then, the vehicle will be owned by the HP Company and can’t legally be sold by you.  If you choose to sell the car before the final installment and fees have been paid then you can opt to pay the remaining balance in one lump sum plus early installment fees.

A deal on HP is suited for those seeking a monthly repayment scheme, looking for low-risk credit, and for those who are happy to own the car once the loan has been totally repaid. You can find jaw dropping contract hire deals for VW cars at Listers.

Secondly we take a look at Personal contract purchase, PCP much like HP in lots of ways.  An initial deposit is made, fixed rate of interest and repayments are made monthly over a fixed period.  PCP differs from HP in that at the end of the loan period you have three options available.  You can return the car, keep it or trade it in against a replacement.  PCP is ideal for those seeking lower monthly repayments to that of a HP deal and who like the idea of having the options at the end of the loan term.

Next up is a Personal Listers VW Contract hire, PCH, which can also be referred to as Personal Leasing. This method allows you to rent a car for a set amount of time, typically a few years with an agreed mileage limit.  A PCH leaves no option to purchase at the end of your agreement as the car is expected back.  The money you pay covers the car’s decline and depreciation.  This option is extremely popular mainly down to its low deposit and fixed monthly payments.  You even can opt to pay a maintenance fee so that any repair costs are covered. Ideal for those seeking to drive a luxury car, or those who like to upgrade their car regularly.

Lastly is Lease Purchase, similar to PCP in that the remaining value is left until the agreement is at the end, and this is based on the type of car and its mileage. Lower monthly payments are beneficial with this option along with the chance for all drivers to access luxury cars. This deal, however, comes with no guarantee to be able to give the car back at the end of the agreement, and you may have to pay the outstanding value through further finance or in cash. This option is ideal for those seeking low monthly payments, desire low interest rates without committing to fixed mileage.

The second step is easy, with Scotland’s largest range of luxury cars we think we’re the perfect place for you to find your next car and you could be driving away in your dream car sooner than you think. Check out our range of cars and finance deals online.

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