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Contract Hire and Leasing Guide

  • About Pre Registered vehicles

    Pre-registered vehicles, or pre-reg cars, present an intriguing option for potential car buyers, blending the allure of a new vehicle with the financial advantages usually associated with used cars. These vehicles are initially purchased and registered by dealers or leasing companies, mainly to secure bulk purchase discounts from manufacturers. This practice serves several purposes, including helping manufacturers manage inventory and market share, as well as clearing out old stock in anticipation of new model releases, all without undermining the official recommended retail price.
  • Benefit-in-Kind (BIK) rates April 2024 2028

    The structure of company car tax, known as Benefit-in-Kind (BIK) rates, is set for significant changes from April 2024 to 2028, reflecting the UK government's continued push towards electrification of the vehicle fleet and environmental sustainability.

    These changes are intricately designed to incentivize both the adoption of electric vehicles (EVs) and the use of vehicles with lower CO2 emissions, aligning with broader climate change targets.
  • Benefits of Maintenance

    Fully maintained contracts are a beacon of convenience and reassurance in the world of vehicle management, offering a seamless solution to handle unexpected maintenance bills while facilitating precise budget planning for company car maintenance costs. This holistic approach to vehicle maintenance not only provides peace of mind but also introduces a level of financial predictability into an otherwise variable expense area. Companies and individuals alike are encouraged to weigh the benefits of contracts with full maintenance against those without, to ensure they select the option that most closely aligns with their motoring needs and financial strategies.
  • Business Account Eligibility

    Navigating the process of securing a business account for contract hire and leasing agreements can seem like a daunting task, but understanding the eligibility criteria can simplify the journey. Fundamentally, these agreements are a form of credit provided by financiers to businesses—including limited companies, sole traders, LLPs, and PLCs. The approval of such accounts hinges on the customer's credit status and the cost of the vehicle, despite the vehicle remaining the property of the financier from the start.
  • Business Contract Hire

    Business Contract Hire (BCH) presents an appealing option for companies looking to manage their vehicle fleets efficiently and cost-effectively. It suits a wide range of businesses, from small enterprises to large corporations, especially those that are VAT registered. This method of acquiring vehicles is favored for its simplicity and financial predictability. Through platforms like All Vehicle Contracts, businesses can effortlessly compare various Contract Hire deals, ensuring they find the best fit for their specific needs. The ability to tailor contracts based on monthly budgets and annual mileage adds a layer of customization that is highly valued in the corporate world.
  • Contract Hire with Maintenance

    Contract Hire with Maintenance

    Fully maintained contract hire offers you and your company convenience and reassurance, knowing that you will not be faced with unexpected bills, and enabling you to budget company car maintenance costs with confidence and total control.

    Our aim is to find the right solution from our wide range of products and services and recommend that you compare both contract hire without maintenance and contract hire with full maintenance prior to signing. Contract hire agreements that include maintenance are constructed to cover all your motoring costs excluding fuel and insurance.

  • Contract Hire without Maintenance

    Choosing between contract hire or personal contract hire with or without maintenance is a significant decision that impacts your financial planning and peace of mind during the lease term. A contract without maintenance might initially seem less expensive because it comes with lower monthly payments. However, this option transfers the responsibility of servicing and maintenance costs directly to you, the customer. This means that every routine service, unexpected repair, or tire replacement due to wear and tear becomes an out-of-pocket expense. Given the variability of maintenance needs over time, this can lead to unforeseen financial strain.
  • Contract Vehicle Return Policy

    All Vehicle Contracts is a member of the British Vehicle Rental and Leasing Association (BVRLA) and subscribe to the standards recommended by the British Vehicle Rental and Leasing Association (BVRLA), which are also widely used as a benchmark in the vehicle industry for all major contract hire and rental companies.

    We set out to generalize what is acceptable and what is unacceptable as follows and as recommended by the BVRLA in relation to contract end vehicle return. Vehicle return terms and conditions will be detailed on the relevant documentation appertaining to yours or your company’s agreement.
  • Contracts With out Maintenance

    Contract hire with maintenance represents a strategic choice for businesses and individuals aiming for predictable automotive expenses without the surprises of unforeseen repair costs. This option integrates all necessary servicing, maintenance, and even the replacement of parts to ensure the vehicle remains in prime condition according to the manufacturer's recommendations. Notably, it includes the road fund licence and the provision of tyres due to normal wear and tear, alongside ensuring a current MOT certificate is in place where applicable. This comprehensive approach to vehicle leasing offers a peace of mind that can be particularly valuable in managing operational costs efficiently.
  • Effective Leasing Rental

    The concept of "effective rental" plays a crucial role in understanding the financial implications for VAT-registered businesses when entering into contract hire or finance lease agreements. This terminology is pivotal as it encapsulates the true cost of monthly rentals for such businesses, taking into account the nuances of VAT (Value Added Tax) recovery. Specifically, effective rental is defined as the gross contract hire or lease rental amount plus 50% of the VAT on that rental. This calculation is significant because, in many jurisdictions, businesses can reclaim VAT on certain expenses, thereby affecting the actual cost incurred.
  • Finance Lease

    Vehicle finance leasing presents an intriguing and efficient avenue for businesses in the U.K. to acquire new vehicles without the hefty price tag of outright ownership. This financial solution has its roots in the 1800s and has evolved to become a cornerstone of equipment finance globally, catering not just to smaller assets but to substantial investments like vehicles, aircraft, and even power plants. For companies that are VAT registered, whether small, large, or partnerships, vehicle leasing in the U.K. offers a cost-effective strategy to update or expand their fleet, especially for assets like vans and commercial vehicles that tend to depreciate rapidly.
  • Flexi Lease

    Flexi leasing for business

    Flexi lease is ideal for those that want a return of capital at lease end and cost effective motoring without mileage restrictions. Flexi lease attracts full fleet discounts making this method of funding for business users well worth considering.

    Flexi lease is also a good option for high mileage cars, commercials vehicles, and in particular specialist’s vehicles and those that are used for hard work that tests the vehicles depreciation curb over the lease period.

    Lease agreements allow use of a vehicle without ownership, but still offers the return of all the asset value achieved from the sale, or the majority of the sale proceeds less a percentage to the finance companies in some instances.
  • Key Information PCP Finance

    Key Information regarding PCP(Personal Contract Purchase)


    All Vehicle Contracts Limited may also be referred to herein as ‘We’ ‘Company’ ‘AVC’ ‘Us’ ‘Our’ and ‘All Vehicle Contracts’.

    Customers and potential Customers may also be referred to herein as ’You’, ‘Your’ and ‘Clients’.

    Key Information regarding PCP (Personal Contract)This page will provide You with the facts, offering summarised information and guidance on PCP Personal Contract Purchase, as funding method for Your chosen vehicle. PCP Personal Contract Purchase

    Vehicle Insurance and PCP (Personal Contract Purchase)

    As with any contract or finance agreement, You are required to maintain a fully comprehensive insurance policy for the duration of the agreement.
  • Key Information Personal Contract Hire

    Contract Hire and Leasing GuideKey Information regarding Personal Contract HireTerms:

    All Vehicle Contracts Limited may also be referred to herein as ‘We’ ‘Company’ ‘AVC’ ‘Us’ ‘Our’ and ‘All Vehicle Contracts’.

    CUstomers and potential CUstomers may also be referred to herein as ’You’, ‘Your’ and ‘Clients’.

    Key Information regarding Personal Contract HireThis page will provide You with the facts, offering summarised information and guidance on Personal Contract Hire, as funding method for Your chosen vehicle.

    This link details a full summary of personal contract hire jargon / terminology (Guide to Personal Contract Hire).

    Vehicle Insurance and Personal Contract Hire
  • Lease Purchase

    Lease Purchase (Hire Purchase)

    Hire Purchase or Lease Purchase finance agreements are the same, the difference being is that lease purchase can offer lower monthly payments by incorporating a final payment (sometimes referred to as a balloon payment); this figure is one larger payment due at the end of the lease purchase agreement.  The purpose of setting this figure is to reduce monthly payments compared to that of normal hire purchase. The agreement will either be Regulated or Unregulated under the Consumer Credit Act.
  • Payment Profiles for Leasing

    Understanding Contract Hire initial payments, payment profiles, and the associated jargon can seem daunting at first, but with a bit of clarification, it becomes much clearer. When entering a Contract Hire agreement for a vehicle, the initial payment is a crucial component to consider. It's typically expressed in terms of the number of monthly payments made upfront. This amount can range from as little as 1 month's payment in advance to as much as 12 months' payment upfront. The principle here is straightforward: the higher the initial payment, the lower the subsequent monthly payments will be. This structure allows for flexibility in managing cash flow and can significantly impact the overall cost of the contract.
  • PCP fair wear and tear guide

    PCP fair wear and tear guide

    If you choose to return your vehicle under the terms of your PCP agreement the finance company will expect the vehicle to be returned in good condition and serviced to the manufacturer’s standard.

    Fair wear and tear is acceptable so to avoid confusion, we have set out to define what is acceptable and what is unacceptable.

    Acceptable vehicle return standards

    Windscreen and windows - Surface chips with no spreading cracks, professionally repaired minor chips
  • PCP Personal Contract Purchase

    Personal Contract Purchase (PCP) is a versatile and increasingly popular method of vehicle financing that offers a blend of affordability and flexibility, making it an attractive option for many drivers. Unlike traditional hire purchase agreements, PCP allows for lower monthly payments because it factors in the vehicle's Guaranteed Minimum Future Value (GMFV), also known as the balloon payment, at the end of the agreement term. This innovative approach to car financing means that consumers can enjoy driving a newer vehicle for a lower monthly outlay, with the option to purchase the vehicle at the end of the term, part-exchange it for a new one, or simply return it to the dealer.
  • PCP Vehicle return guide

    PCP ( Personal Contract Purchase ) offer an option for you to return the vehicle if you do not wish to purchase it, part exchange or arrange your own sale at the close of the PCP agreement.

    If you choose to return the vehicle, the finance company will require the vehicle to be in good order and in a condition that is relative to the vehicles age and mileage, and serviced in accordance to the manufactures requirements. Fair wear and tear is acceptable but you may incur recharges for any items that are not classed as fair wear and tear.
  • Personal Account Eligibility

    Navigating the world of vehicle finance, particularly through options like Personal Contract Hire (PCH) and Personal Contract Purchase (PCP), can be a complex process, but understanding eligibility criteria and your rights under the Consumer Credit Act 1974 can simplify this journey. These financing options offer an appealing alternative to buying a vehicle outright, allowing consumers to lease or potentially own a vehicle after fulfilling certain conditions. However, to access these financial products, potential borrowers must first meet specific criteria set out by lenders to demonstrate their ability to maintain regular payments throughout the term of the agreement.
  • Personal Contract Hire

    Personal Contract Hire (PCH) represents a compelling choice for individuals seeking a hassle-free method to acquire a vehicle for personal use. By encompassing VAT within the monthly hire payments, PCH simplifies the process, making it an attractive option for those opting out of traditional company car schemes in favour of a cash allowance. This approach to vehicle acquisition is designed to offer the flexibility and convenience of having a car without the commitment of ownership, with the added benefit of VAT-inclusive pricing which can be particularly advantageous for personal users.
  • Personal Contract Hire with Maintenance

    Personal Contract Hire (PCH) with maintenance is an attractive option for individuals seeking a hassle-free way to enjoy a new vehicle without the worry of unexpected maintenance costs. This all-encompassing lease agreement not only covers the cost of the vehicle over a set period but also includes comprehensive maintenance packages. These packages ensure that all servicing needs, replacement parts required to meet the manufacturer’s recommendations, road fund license for the duration of the contract, and even tyre replacements due to normal wear and tear, are fully covered. This means that drivers can enjoy a fixed-cost motoring experience, with the peace of mind that there will be no surprise bills for vehicle upkeep.
  • Vehicle fair wear and tear guide

    Vehicle fair wear and tear guide

    All Vehicle Contracts is a member of the British Vehicle Rental and Leasing Association (BVRLA) and subscribe to the standards recommended by them. These standards are widely recognised as a benchmark in the vehicle industry for all major contract hire and rental companies.

    Below is a generalised guide as to what is acceptable and what is unacceptable as recommended by the BVRLA in relation to contract end vehicle fair wear and tear.

    Acceptable vehicle return standards

    Windscreen and windows - Surface chips with no spreading cracks, professionally repaired minor chips
  • Vehicle Order Process

    All Vehicle Contracts simplifies the journey to getting your new vehicle, making it a seamless and personalized experience. The initial step in this journey begins with what is known as a pre-contract order. This initial phase is crucial as it establishes the foundation of your agreement, linking your chosen vehicle to the most appropriate financing option. This could range from business leases and personal leases to contract hire or Personal Contract Purchase (PCP) finance. The flexibility inherent in this process means adjustments can be made as often as necessary. This ensures the vehicle and its specifications are perfectly aligned with your needs before moving forward.