Advice Reqd. - Contract Hire/Other
Discussion
Hi all, a bit of help please. Posted on General Gassing, and it was suggested to have a go here.
Does anyone know companies offering personal contract hire, on nearly new high spec vehicles?
Early in the new year, I will be looking to replace the RS4, and have decided to plump for something a tad more special. I yearn for the performance of the GTO-3R I used to run, but with a touch more class. Have money invested that could be used to fund an outright purchase, but also the oppotunity to re-invest at a very healthy rate of interest. For this reason, I've pondered the possibility of personal contract hire.
Not too bothered about having brand new, but a 1 or 2 year old vehicle would be good - I am reasoning that some depreciation will have taken place, and that supply would not be a problem.
Have tried to google, but so far thrown up very little. Does anyone have any suggestions, or alternative thoughts ref. the financing?
TIA, Mark
Does anyone know companies offering personal contract hire, on nearly new high spec vehicles?
Early in the new year, I will be looking to replace the RS4, and have decided to plump for something a tad more special. I yearn for the performance of the GTO-3R I used to run, but with a touch more class. Have money invested that could be used to fund an outright purchase, but also the oppotunity to re-invest at a very healthy rate of interest. For this reason, I've pondered the possibility of personal contract hire.
Not too bothered about having brand new, but a 1 or 2 year old vehicle would be good - I am reasoning that some depreciation will have taken place, and that supply would not be a problem.
Have tried to google, but so far thrown up very little. Does anyone have any suggestions, or alternative thoughts ref. the financing?
TIA, Mark
You should look at a personal contract plan (PCP) rather than personal contract hire. The main differences are that with a pcp you get to share in any profit over and above the balloon value of the car; you have the option to get out at any time by obtaining a settlment figure and selling/trading the car (you can't do this with contract hire); plus you als have the option to hand the car back at the end of the term, just the same as with a contract hire agreement.
The reason you don't see many personal contract hire agreements being offered is because the main benefit of contact hire is the payments are VAT deductable; so if you are running it through a business it would be more cost efficient to run a car this way.
The reason you don't see many personal contract hire agreements being offered is because the main benefit of contact hire is the payments are VAT deductable; so if you are running it through a business it would be more cost efficient to run a car this way.
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