Running a car is very expensive, especially if you are a home owner, too. You’ll probably have a mortgage to pay, council tax, utility bills, TV licence and other living costs. If you own a car as well, you’ll have all the costs associated with that, such as road tax, insurance, general maintenance and fuel. Over the year, this can add up to thousands of pounds. Like most people, you are almost certainly on the look out for ways you can reduce your outgoings in order to be able to spend money on things that are important to you.

Contract hire is one way that you can save money. For the private individual it provides the perfect solution to vehicle funding, because instead of paying a large amount of money to own a vehicle, you just pay a monthly rental to a leasing company. The fixed monthly rental is calculated based on the following elements:

• Cost of vehicle funding
• Cost of vehicle depreciation
• Road Fund License

You can choose to include a maintenance and servicing package if you wish for an additional sum and that way you know you are covered for all routine servicing and most maintenance costs within the fixed monthly payments.

Some of the ways that personal contract hire can help you save money:

• Low deposit
• Fixed monthly cost and accurate budgeting
• No depreciation risk
• Sourcing, disposal and administration handled for you

By choosing this method of vehicle funding you get hassle-free motoring without all the residual value risks associated with traditional ownership; since you don’t own the car you don’t have to worry about it losing value and not being worth much when you finish with it. Your initial outlay will also be much lower than it would be if you were buying a car outright.

As far as running your car goes, there will be no fluctuations month to month in what you spend, because everything is taken care of in your fixed monthly rental. Contract hire, therefore, gives you peace of mind and the ability to be able to budget better, so that you can spend your money on things that are important to you.

UKVF is a privately owned vehicle finance and vehicle sourcing company and we have over 15 years’ experience in the industry. Give us a call today on 01257 267 036 for advice or a free personal contract hire quote.