Contract Hire
Sometimes, buying a car outright isn't the answer. If you're looking for the ease of hiring and the security of driving the same car every day, a Contract Hire agreement could be just what you need.
It's basically a long-term car hire arrangement: you make monthly payments in the same way as a HP (Hire Purchase) or PCP (Personal Contract Purchase) deal, but your monthly payments are smaller, since you're hiring the car, not buying it.
How Car Contract Hire works
- You pay a small deposit and drive away in your new car
- Make a payment every month
- Hand the car back at the end of the deal
As long as you haven't exceeded the agreed mileage and the car's still in good condition, you won't pay another penny.
Benefits of Car Contract Hire
- Small deposit. No need to wait while you save up - your deposit could come out of your monthly salary.
- Fixed monthly payments. You know exactly how much you will be paying every month, making budgeting simple.
- Cheaper than HP. Pay less each month, or get a more expensive car for the same price.
- Hiring, not buying. None of the issues that come with car ownership. Once your terms are over, you hand the car back and walk away.
How your contract hire payments are calculated
When we're calculating your car contract hire repayments, we take four things into account.
- Cost of the car
- Your estimated mileage
- Duration of your contract hire terms (e.g. 3 or 5 years)
- Depreciation of the car's value
Car contract hire is quick, easy and cost-effective - and if your mileage is low, or you hire the vehicle over a longer period of time, your payments could be even cheaper.