Will I get charged for damage when I return my car?

If you have looked after your vehicle and returned it free of damage then the answer is no. Customers have an obligation to make their vehicles available at the end of the term for inspection. Acceptable fair wear and tear such as small stone chips and light scratches are taken into account by the funder, also keeping in mind the client's annual mileage.

Please don't hesitate to ask one of our Team for a copy of our fair wear and tear and vehicle hand-back procedures – it varies from funder to funder and we will be happy to send across the details to you by return for your perusal and total peace of mind.

Can I cancel my Business Contract Hire agreement?

Early settlement terms and conditions are detailed in your contract hire agreement. Usually, there is no rebate allowance if you decide to hand the vehicle back less than 12 months into any agreement. After 12 months, rebates may be available, but policies will vary from funder to funder. Please speak with a member of our team regarding this concern or refer to your agreement before signing as early termination can sometimes be costly.

If you require a flexible agreement, Business Contract Hire may not be the ideal option for you, mainly due to the way it is calculated and how the monthly rentals are worked out based on forecasted vehicular depreciation 'sliding scales'.

Will I get charged if I exceed my agreed contract mileage?

Yes. There will be a pre-agreed excess mileage clause from the outset. Excess mileage is charged on a 'pence per mile' basis. If you are under the mileage allowance, there is no refund unless you have a pooled mileage agreement which is usually only for larger fleets.

Taking out a higher mileage contract is not usually as costly as you may think, however, so if you do more than 'average' miles, please don't hesitate to request a bespoke quotation from Egon Car Leasing – you will not be 'penalised' by a leasing company for travelling more than 10k miles per annum any more than if you owned a car outright.

Is Personal Contract Hire right for me?

If you are looking for reasonably priced, fixed-cost motoring that you can tailor to suit your budget and mileage, PCH is a great form of funding. You make the same costs repayment each month on a vehicle of your choice.

The good news is that often, sought-after cars that you may have considered as being out of your price range, have good residual values which result in lower rentals!

Personal Contract Hire gives you the choice to put down a low initial outlay; you can choose your own initial payment and contract term, usually between 24-48 months.

VAT is included within your monthly rental and you can also choose to take out a servicing and maintenance package which often work out very reasonably when considering the bulk discounts that funders secure for their fleets. This effectively takes care of all your motoring costs, except for fuel and insurance.

The first payment – classed as '1' payment – consists of months that are added together, i.e. 3, 6 or 9 months in advance. There is no refund at the end of the contract for these months unless you choose to customise your PCH agreement in this way. The higher the initial payment, the lower your rental will be.

Some clients opt for 1 payment down which is an option, particularly for those of you who have a history of 'good credit'.

Will Personal Contract Hire penalise me for exceeding the average annual mileage?

In a word, no. Under the terms of a Contract Hire agreement, there will be an excess mileage clause, which sets out excess mileage from the outset. This is charged at pence per mile and is not a 'penalty' clause as such – it exists to redress any difference that extra mileage has cost in terms of the resale value of the contract vehicle.

If you settle your agreement early, mileage is calculated pro-rata and if you return the vehicle under-mileage, you do not get a refund for miles not driven.

Many of Egon Car Leasing's clients do well in excess of the average annual mileage and do not find that the contract hire monthly amount is excessive – in fact, in most cases, PCH is an extremely affordable way of driving a brand new, efficient and reliable vehicle!

Will I get penalised for any damage to a vehicle that is taken out on a Personal Contract Hire agreement?

If you damage a car in a manner that does not fall under 'fair wear and tear' and do not repair it as you would with a car that was owned, for example, then you will be invoiced for damage.

If you make repairs to any contract vehicle you can make a claim with your insurance company as you usually would.

Funders do not set out to penalise anyone for damaging vehicles unnecessarily – for full details of what is classed as fair wear and tear and vehicle hand-back procedures, please don't hesitate to ask one of the team at Egon Car Leasing and we will forward you the documents appertaining to your chosen finance company.

Can I terminate a Personal Contract Hire agreement early?

If you do not feel that you are able to commit to the term of the contract, we would not recommend PCH as the ideal agreement for you. Perhaps PCP or finance would be more suitable, in which case please chat to us about these methods of funding and we will be happy to help you secure a great value deal.

The reason for this is that it is usual that no rebates are due if you want to hand the vehicle back before you are 12 months into the agreement. After this time, settlement rebates may be available – often there is between 20%-50% discount on the outstanding rentals plus outstanding excess mileage. This, however, is not always the case and may vary from funder to funder.

Please refer to your agreement and don't hesitate to ask us if you have any queries prior to signing, as early termination could prove costly.

What is the difference between Personal Contract Hire and leasing and is it different from PCP?

Personal Contract Hire is often be referred to as (Personal) Leasing. Although this is a popular reference, a vehicle leasing agreement is not quite the same as Personal Contract Hire.

Vehicle lease agreements are not available to personal users in the U.K. – Finance Lease Is available to Business Users only.

Individuals can enter into a Lease purchase or PCP agreement, however. This is a VAT inclusive finance agreement, working on the same kind of principals as a lease agreement but it is a regulated (or unregulated) finance agreement by the Consumer Credit Act 1974.