Car Leasing Blog

Personal Lease Hire is a commonly used phrase for personal leasing.

Basically, it falls into two different catagories

Personal Contract Purchase ( or PCP)

This is a regulated hire purchase agreement which normally needs to be signed on trade premises.

It encompasses a fixed rental (which includes VAT) over a fixed term and fixed mileage. Once the term has completed there is an option to return the vehicle to the funding company or pay a final payment to own.

Very importantly, should you wish to return the vehicle (which most people do) you should notify the finance company before the end of the contract.

More information on PCP Contracts can be found here

http://www.carleasingblog.co.uk/2007/11/09/pcp-contract-information/

Personal Contract Hire ( or PCH)

Personal contract hire is very similar to conventional contract hire. Once again fixed term, fixed mileage, fixed price.

One of the benefits is that PCH normally will provide road fund licence (road tax) for the term of the contract.

Also, there is no need to notify the leasing company to return the vehicle - they will contact you.

More information on Personal Leasing and PCH can be found here

http://www.carleasingblog.co.uk/2007/10/22/personal-car-leasing-top-10-tips/

we’ve all seen the Honda choir ad, here is the latest one. Love these things

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Please give me a shout (comments or email to admin@carleasingblog.co.uk) with your credentials and I will add you as a user.

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The first step with walking into the daunting world of car leasing is gather your quotations from various companies and brokers.

Once you have gathered your quotations, start to order them by merit. This doesn’t always mean by price, the following factors should be built into your filtering process.

Very importantly, MAKE SURE EVERYTHING IS IN WRITING ! Thats the last time I will say it, if it goes wrong - dont post it here if you dont have it in writing.

1. The validity of the quotation - Check the smallprint for how long the quote is valid for.

2. The validity of the supplier - do they have a consumer credit licence, data protection licence, company reg number, etc,etc,etc. Alot of the industry is built up of part - time brokers and you may have to ring them while they are at work doing their real job.

3. Who is funding the deal - this should be a well know financial institution such as lex,lombard,lloyds,etc.

4. Who is supplying the deal - the exact dealership your car will be coming from.

5. How long - what is the delivery date, do they have a courtesy car provision if its late?

 Once you are perfectly comfortable with the provider of your quotation, its time to go ahead and complete a proposal form.

next time..

The Consumer Credit Act 1974 requires most businesses that offer credit or lend money to consumers to be licensed by the OFT. This includes where credit is arranged to finance the purchase of goods or services. Licensing arrangements may also be required by debt collectors, debt advisors and businesses that offer goods for hire or leasing. Trading without a licensing arrangement is a criminal offence and can result in a fine and/or imprisonment.

 Basically, if you are going to pass your information to a third party for any from of debt counceling or credit reference,loans etc. The company or person should hold a valid consumer credit licence.

You can ask for a copy of this licence at any time, and people should. In over 10,000 loan applications over a 5 years period, I dont think I have been asked to produce mine once! scary.