What is Personal Contract Hire?
Personal Contract Hire is an agreement based on
a fixed term and mileage. An initial payment is required at
the beginning of the contract followed by monthly fixed payments
for the remaining term of the contract. You have the option to
add a maintenance package which is a fixed cost spread over
the term of the agreement. If you exceed the mileage agreed, you
would occur an excess mileage rate which is calculated in pence per
mile. At the end of the agreement you hand back the vehicle and
either start a new agreement or extend the current. The benefit of
Personal Contract Hire is that delivery charges are included as
well as your road fund licence depending on the vehicle chosen.
What is Business Contract Hire?
Business Contract Hire is similar to Personal Contract Hire. The
main difference between the two is that on a Business Contract Hire
you can recover 50% of the VAT from the monthly rental. The benefit
of Business Contract Hire is that delivery charges
are included as well as your road fund licence depending on
the vehicle chosen.
What is Personal Contract Purchase?
Personal Contract Purchase is a fixed term and mileage
agreement. Again, it's similar to Personal Contract Hire and
Business Contract Hire but at the end of the agreement you have an
optional final payment. The optional final payment gives you a
choice to either purchase the car for the final amount or hand the
vehicle back, and start a new agreement. If you exceed the mileage
agreed, you would occur an excess mileage rate, which is calculated
in pence per mile. Personal Contract Purchase only allows 12
months road fund licence.
See below for a list of common questions we get asked here at
BestCarFinder. We hope this page will answer most of your questions
and we will be constantly updating this list over the coming
Q: Are there any hidden charges?
A: No, the only other charge is a document fee, which can vary on
the contract and vehicle taken. The charge will always be stated at
the time of quotation.
Q: How long is the period of lease?
A: Depending on the vehicle and contract chosen, our contracts
range from 6 - 60 months.
Q: Is the road fund included?
A: Depending on the type of contract chosen, our contracts will
come with 12 months or for the duration of the contract.
Q: Can I change the mileage on the
A: You can change the mileage on a contract up to the amount of
5,000 mpa depending on the contract chosen.
Q: Who supplies the vehicles?
A: All our vehicles are supplied via the UK dealer network.
Q: Is delivery included?
A: Yes, delivery is included to a home or work address in the UK
mainland. The vehicle will also be collected at the end of the
Q: Is warranty included?
A: Yes, you will receive a full UK warranty.
Q: Is roadside assistance included?
A: You will have either 12 months or 3 years depending on the
Q: Is maintenance available?
A: Yes, maintenance is optional. Please call our friendly sales
team for more advice.
Q: What if I need to end the contract
A: You can cover yourself with early termination insurance, which
is an up front payment that will cover the cost left
Please call our friendly sales team for more advice.
Q: Is Gap insurance available to cover shortfalls
A: Yes, Gap is available, please call our friendly sales team for
Q: What does residual value mean?
A: In car leasing, the residual value is the predicted value of
the vehicle at the end of the lease term - the higher the residual
value, the lower the monthly payments of your lease agreement.
Q: What does P11D mean?
A: A term used by the Inland Revenue for tax purposes. This
relates to the value of the vehicle after the cost of extras.
Q: What does PCP stand for?
A: Personal Contract Purchase (sometimes referred to as personal
contract plans). With a PCP agreement you have an option to pay the
final sum to the dealer to own the car, or alternatively you can
hand it back.
Q: What does the number in front of the total amount of
months to pay mean?
A: This is the number of initial payments payable by way of
deposit followed by the number of payments to be made each month
for the duration of the contract.
Q: What does depreciation mean?
A: This is how much the car's value reduces over the leasing
period. All vehicles depreciate in value as soon as you drive them.
The lower the level of depreciation, the less you will have to