contract hire

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Thu 24 Aug 2006 15:07
contract hire - aircoolplatini
I am opting out of my company car scheme and looking at ways of buying - contract hire looks very tempting. Being aware of the tie in for three years, are there any other things I need to take into consideration? Some of the prices I have been quoted seem too good to be true.
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Thu 24 Aug 2006 15:55
contract hire - y2k+4
Be aware that since you don't own the car, your insurance premiums are likely to be higher - Dad found this with his Almera at £29/wk he thought it was dirt cheap, and then the insurance company quoted nearly twice what he'd expected...and don't forget, you'll never actually own the car, so it's effectively renting with all the pro/cons that go with that.
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Thu 24 Aug 2006 15:55
contract hire - y2k+4
Oh and make sure you have an appropriate mileage limit - you can get ridiculously stung should you go over with some companies.
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Thu 24 Aug 2006 15:57
contract hire - Statistical outlier
Insurance and ownership - all the insurance companies I talked to treat PCP as if you *do* own the car. They are interested in who would suffer financially if there is damage. As the leasee, you need to return the car in the state it should be, you suffer the financial pain if you do not and it is you who are on the V5 therefore they treat you as the owner.

And yes, I was careful to get confirmation that I'd had that conversation with them and it was okay.
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Thu 24 Aug 2006 16:26
contract hire - Bill Payer
I am opting out of my company car scheme and looking
at ways of buying - contract hire looks very tempting. Being
aware of the tie in for three years, are there any
other things I need to take into consideration?


You might want to think about getting sickness/redundancy/resignation insurance.
Some of the prices I have been quoted seem too good to be true.


Are you sure they include VAT, which you'll have to pay?
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Thu 24 Aug 2006 19:19
contract hire - Falkirk Bairn
As well as sickness & redundancy get cover for cancelling mid-contract - if you were unable to work being billed for the remaining term of the lease would be painful.

A "get out of jail insurance" to cover the unforeseen is important.
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Thu 24 Aug 2006 19:21
contract hire - Statistical outlier
Trouble is with all those covers, can add *massively* to the cost of the contract. Might be better just to bear in mind that you need sufficient resuorces to keep paying over any foreseeable gap in income - has worked for me, even if it's been a little painful.
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