Funding Methods - Personal Contract Hire

How it Works:

Personal Contract Hire gives the user a fixed equal monthly rental for a fixed contract term. At the end of the contract term the car is handed back.

Popular With:

Company car drivers who are given a "Car Allowance" instead of a company car thus allowing the individual to make his/her own choice and arrangements. This in turn will benefit the company. This will also avoid "Benefit in Kind" taxation.

Advantages:

Ø Low initial outlay.
Ø More tax-effective then Personal Contract Plan if the vehicle is used partly for work.
Ø The contract is not subject to a final balloon payment.

Disadvantages:

Ø Maintenance contract is mandatory.

Summary:

Overall, a convenient and hassle-free funding method with tax advantages.