Fulton Vehicle Leasing

36 Years of Leasing Experience

There are a number of different leasing products available to you whether you’re looking at leasing as a business or personally, here you will find an overview of each product which may help give you decide which suits best. If you are still unsure or have some questions please give the team a call as we will be more than happy to help.

What is Personal Contract Hire?

What is Personal Contract Hire?

Personal Contract Hire is essentially the same as Business Contact Hire but for private individuals; when people say they “lease” their vehicle privately they are normally referring to Personal Contract Hire, the other similar option is Personal Contract Purchase. These products offer flexibility and fixed monthly costs and makes them popular choices. Of all the methods to finance cars in the UK, Personal Contract Hire is now the fastest growing in popularity.

The information below gives you a good idea of how the rentals are calculated, the benefits to you, along with the points to consider about this product.

What affects the Monthly Rental Price?

A number of factors come into play when calculating the monthly rental for you and these need to be considered when thinking about which vehicle to lease. Our team are happy to discuss these in detail, we believe it important you make an informed decision that is right for you, not us.

Vehicle Purchase Price – This is a big factor, the more expensive the vehicle, generally the more you can expect your rental to be, although strong residual values can sometimes buck this trend, resulting in a nice surprise. We source and negotiate the price of the vehicles ensuring we achieve the most competitive prices, and don’t worry, we only buy from the manufactures franchised dealers.

Residual Value – The amount the funder believes the vehicle will be worth at the end of the contract term. They decide this based on how old the vehicle will be at the end of the contract term and how many miles will be on the clock at this point, they monitor previous sales of the vehicles and closely and constantly monitor industry data,  which gives them a good idea of where to set it. The good news is - If they get it wrong and it sells for less than they had hoped to, it’s not your problem!

Mileage & Contract Length ­– The more miles you do, the more the value of the vehicle drops, so of course your rental will be higher. Contract Length can have a varying impact, normally the longer you have the vehicle the lower the rental but this is not always the case.

Maintained Contracts - You can choose to maintain the vehicle yourself or include maintenance in the package at an extra cost, this includes; servicing, mechanical repairs, tyre replacement and comprehensive breakdown cover. Ideal if you do not want any surprise bills and a fixed monthly cost!

 The Key Benefits of Personal Contract Hire

  • The most common form of Private Car Leasing.
  • Fixed Monthly Costs, making budgeting easier, maintenance can be included also. 
  • Flexibility in contract terms, such as contract length, annual mileage and vehicle choice. 
  • Vehicle tax, RFL is included throughout the contract term.
  • No disposal risk, the funder will collect the car and dispose of it, if they sell it for less than they’d hoped it is not your problem (subject to the vehicle mileage not being over what was contractually agreed and there not being any damage over and above normal “Fair Wear & Tear”),
  • Often gives you access to vehicles that may have been out of budget when looking to purchase.

  Points to Consider

 Early Termination of the contract can be expensive.

  • If you exceed your agreed mileage you will be charged a pence per mile at a rate  which will be pre agreed in your contract.
  • You are responsible for insuring the vehicle on a fully comprehensive policy.
  • You must return the vehicle in a well maintained condition, this is always a point of concern for customers, but our funders work to a Fair Wear & Tear guide that shows what is and what isn’t acceptable, please speak to our team should you wish to see a copy before agreeing to the terms.


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Alternatively you can contact us on 0118 983 8020 or email us at sales@fultonleasing.co.uk