PERSONAL CONTRACT HIRE
Everything you need to know about Personal Contract Hire finance
WHAT IS PERSONAL CONTRACT HIRE?
Personal Contract Hire is a fixed cost rental agreement.
You first choose your new Suzuki car, pay an initial rental in advance, followed by fixed monthly rentals to suit your budget. You can even choose an optional maintenance package as part of your agreement which can help take away the hassle of keeping your vehicle in good condition.
It’s different from Personal Contract Purchase (PCP) because there is no option to purchase the car at the end of the agreement and the vehicle must be returned.
HOW PERSONAL CONTRACT HIRE WORKS
Personal Contract Hire works by choosing from an initial rental payment in advance of 1-12 months, you then set the contract term between 2-5 years.
You then decide your annual mileage limit – the minimum is 5,000 and the maximum varies by vehicle. If your circumstances change during your agreement you may be able to amend your contracted mileage. You can also then decide whether to add an optional maintenance package at an additional cost.
At the end of the contract you must return the car and you’ll have nothing more to pay if the vehicle condition is in line with BVRLA guidelines and hasn’t exceeded the maximum agreed annual mileage.
If the vehicle doesn’t meet the mileage and condition terms, then excess charges will apply.
IS PERSONAL CONTRACT HIRE THE RIGHT CAR FINANCE DEAL FOR YOU?
Choosing the right finance agreement that’s suitable for you can be quite difficult to understand, so we’re here to make it easy for you.
The benefits of personal contract hire include:
PERSONAL CONTRACT HIRE CONSIDERATIONS
Before you decide whether a Personal Contract Hire agreement is right for you, it’s worth remembering that:
| Hire Purchase | Personal Contract Purchase (PCP) | Personal Contract Hire | |
| Deposit Required | Yes. Flexible. 0% may be available. | Yes. Flexible. 0% may be available. | Yes. 1 - 12 months initial rental. |
Length of Agreement | From 1 -5 years | From 2 - 4 years | From 2 - 5 years |
| Fixed Payments | Yes | Yes | Yes |
| Final lump sum repayment at agreement end | N/A | Yes | N/A |
| Maximum permitted age of car at agreement end | Typically 14 years | Typically 7 years | Typically 5 years |
| Ownership at agreement end | Yes | Yes. If you pay the final lump sum payment. | No ownership option available. You must arrange to return the vehicle. |
| Goods return option | N/A | Yes. Return conditions apply. | No ownership option available. You must arrange to return the vehicle. |
| Excess mileage charges | N/A | Yes. If exercise goods return option and exceed mileage allowance. | Yes. If contracted mileage allowance exceeded. |
Part exchange NB. Subject to settling outstanding finance. New agreements subject to status. | Yes | Yes | N/A |
Voluntary termination rights NB. Regulated agreements only | Yes | Yes | N/A |
Fully comprehensive insurance required | Yes | Yes | Yes |
Ability to amend monthly payment due date NB. Subject to loss of interest charge. | Yes. Once every 12 months. | Yes. Once over the lifetime of the agreement. | Yes. Subject to conditions. |
*Hire Purchase, PCP and Personal Contract Hire are subject to status and only available to UK residents aged 18 and over. Credit products are provided by Suzuki Finance, a trading style of Suzuki Financial Services Ltd, St William House, Tresillian Terrace, Cardiff CF10 5BH. Personal Contract Hire is provided by Lex Autolease Limited trading as Suzuki Contract Hire, Heathside Park, Heathside Park Road, Stockport SK3 0RB.
**Under our PCP product, you have the option at the end of the agreement to return the vehicle and not pay the deferred optional Final Payment. Providing the vehicle is in good condition and has not exceeded the maximum agreed mileage you will have nothing further to pay. If the vehicle has exceeded the maximum agreed mileage a charge for excess mileage will apply. Further information on what is considered good condition can be found here.
