December 5 2018
AMT has been offering personal and business contract hire for over 20 years. For any type of car or van, from any manufacturer, AMT can access the best deals in the market at any time. But what is vehicle leasing and what’s the difference between business and personal leasing?
Leasing is also known as contract hire. Personal contract hire (PCH) lets you get a new car without a large deposit. You can adjust the terms to get an acceptable monthly payment and you don’t have to worry about depreciation either
How it works
You lease a car over a set period of time, typically between one and five years. You can choose to pay either 1, 3, 6, 9- or 12-months’ rental payments as an initial payment, like a deposit. This is paid after delivery. You then return the vehicle at the end of the term you agreed.
Why choose it?
• Get a newer car than you could afford if you were buying outright
• You can add a maintenance package so you’ll have no additional or surprise costs
• You don’t need to resell your vehicle when you’re ready for a new one
• Road tax is normally included in the initial contract
• The manufacturer’s warranty to cover the vehicle for most or all of the contract
• The vehicle must be returned in a well-maintained condition in line with BVRLA ‘fair wear and tear’
• Early termination of your contract can be expensive
• You must have fully comprehensive vehicle insurance
• VAT is non-reclaimable
• Recharges can be made for damage (that are not covered by BVRLA ‘fair wear and tear’)
• A charge would be made for excess mileage if the contract mileage is exceeded
What about business contract hire (BCH)?
The benefits are all the same. The main differences are:
• You can reclaim the VAT
• If the vehicle is used solely for business purposes, the monthly payments can be claimed as tax relief against the profits of your business
For further information contact Glenn Shelton on 07930 285778 and quote ‘ThinkTree’
Follow the link below
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This post was written by Admin KK