Leasing a Prestige Car?
We make Prestige Car Leasing easy. With Contract Hire, lease a premium brand car with us for less than you probably thought possible.
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Prestige Car Leasing is a phrase defined by Morgan Highfield & Land and explains how it’s possible to lease a premium brand car from an alluring range of Mercedes-Benz, Porsche, BMW, Jaguar, Tesla, Audi, Land Rover & Range Rover.
Contract Hire is our way to lease a new prestige car. It’s perfect for both Business and Personal customers who want an alternative to car ownership, PCP & traditional motor finance.
Premium Brand Expertise & Know-How
When it comes to Prestige Car Leasing, our know-how and expertise are unrivalled. We’ve been doing it exclusively for years, so choose us.
No Admin Fees or Broker Charges
If you decide to lease your new prestige car with us, you won’t pay additional fees or charges. Why should you?
UK Delivery & Inclusive Road Tax
Our pricing includes mainland UK delivery, and vehicle road tax – for the entire duration of Contract Hire.
Business Contract Hire
Business Contract Hire is a great way to lease a prestige car because the business will be hiring rather than ever owning the vehicle.
So, a business enjoys the benefits of driving a new car, for an agreed period just without all the downsides associated with a traditional business bank loan or cash purchase.
A formal process, typically over an extended period ranging from two to a maximum of five years, Business Contract Hire involves a credit agreement between an actively trading business & a financial lender.
The business will never be liable for future re-sale values & all risk associated with vehicle ‘disposal’ at the end of the lease becomes the sole responsibility of a lender.
Business Contract Hire
In return for longer-lasting commitment, competitive repayment terms are offered to the business, ones that are significantly more attractive than a short-term ‘renting by-the-day’ solution could ever provide. There’s also an added advantage with Contract Hire, a business can choose from a much more comprehensive range of cars, often to an exact specification & colour.
To calculate the total balance payable, Business Contract Hire is easily understood when split into two parts. An Initial Payment (known as the ‘Initial Rental’) is engineered for comparison from a multiple of the monthly rental; at the start of the contract. Equal recurring payments (‘Monthly Rentals’) then follow over a fixed period. The total balance repaid is the Initial Rental plus the combined number of monthly rentals all added together, it’s that simple.
If preferred, increasing the Initial Payment reduces (usually on a pro-rata basis) the annual expenditure a business needs to make. Although there aren’t overall savings to be had “paying more upfront” has become popular with sole traders, partnerships & smaller Limited Companies looking to keep monthly motoring outgoings to a minimum.
Once the business agrees on annual mileage, multiplied by the number of years an agreement is to be based upon & forms the ‘total contracted mileage’ for the life of that contract. Higher than average mileages are reflected by increased pricing that considers ‘real world’ influence of a higher mileage on vehicle future values is applied. This way, all types of business user can benefit from a tailored quotation, matching their business needs without ever paying ‘over the odds’.
When the agreement comes to an end, the business hands over the keys & returns the car, assuming the vehicle is returned within the boundaries of reasonable wear & tear, & within the terms of the contract a business agreed to with a lender, there’s nothing else to pay so this is how Business Contract Hire works.
Business Contract Hire could best be described as a ‘hedge’ to protect a business against the unforeseen, mainly as vehicle re-sale values are incredibly changeable. Economic downturns & consumer attitudes to a vehicle brand, fuel type or efficiency are particularly damaging to residual values, perhaps critically just at the wrong time when a business wouldn’t wish to be burdened by more significant amounts of depreciation or additional motoring costs. So, because you’ll never own the vehicle with Business Contract Hire future re-sale values & possible car deprecation are no longer a concern to the Business leasing the car.
The purchase price of the vehicle & predicated future values (decided by a lender) are the two most important factors that dictate the whole life costs of a Business Contract Hire agreement. In simple terms, the price you pay calculates from the vehicles estimated depreciation over a fixed period & this explains why we see such variability of pricing for different models, from differing manufacturers but all with a comparable ‘List Value’.
Motoring budgets can now be several years ahead as the financial burden of the agreement is known from the start; many businesses say this is one of the most important reasons they always choose Business Contract Hire. The cost of road tax is also included for the duration of the contract making administration of a vehicle so much easier.
It’s handy to offer employees a choice of car from wide a range of models best suited to their position, circumstances or an agreed budget & one that is benchmarked to an unbiased view for the different distances members commute to & from work. Projected annual mileages can be fine-tuned to suit the needs of each individual driver, with peace of mind coverage for those that exceed the pre-agreed amount in the form of a reasonable pence per mile charge for excess.
Not having to invest large amounts of business working capital into a car can be beneficial, especially if these reserves can be reinvested or redeployed effectively into another area of the business. We have a wide range of options on Initial Payment starting with just 3 times the monthly rental, but also options at 6, 9 or even 12 rentals in advance.
In most cases for an additional monthly cost, Business Contract Hire agreements provide the option to include a maintenance package. Maintenance packages offer comprehensive cover including routine servicing, replacement brake pads, replacement tyres (excluding damage sustained from theft, malicious or 3rd party damage), batteries, exhausts and all other parts that are subject to fair wear and tear. All scheduled maintenance work can be carried out by the retailer network, usually at a retailer of choice. For cars out of warranty, there’s the added value of cover for mechanical fault & breakdown in addition to everyday consumables when you choose to include maintenance. Often maintenance packages can also save a business time, certainly those without a fleet manager. Employees can also take advantage of mobile tyre-fitting, express servicing facilities & a direct billing system whereby there’s no need for a re-charge or use of company account.
- A low initial outlay, from just 3 months rental
- A choice of the rental period, from 24 to 60 months
- Road Fund License included within the monthly rental
- Exit the agreement, at any time with a pre-agreed termination charge
- No depreciation risks or disposal concerns
- Allows a proportion of the rentals allowable against tax
- Recoverable VAT, dependent upon business VAT status
- Maintenance packages & reduced administration costs
- The ability to forward plan & budget with fixed monthly payments
- A simple ‘hand back’ process at contract finish
- Could release more working capital back to a business
Key Areas for consideration:
- For whatever reason, charges apply if the business wishes to terminate the agreement early
- No pre-agreed ownership option at the end of the contract
- Fair & reasonable excess pence per mile charges will apply if exceeding the total contracted mileage
- Vehicle damage deemed outside of the BVRLA fair wear & tear guide will be re-charged to the business
- Supplements to VED & changes to tax laws might affect the repayments payable
- Fully comprehensive insurance cover, without exception.
Subject to terms and conditions of the agreement
VAT registered businesses, a proportion of VAT is currently reclaimable on the rentals @ 50% of the VAT on the capital element (assuming part private use) and @ 100% of the VAT for any maintenance charges.
Important Message – Morgan Highfield & Land are not an IFA & do not offer qualified tax advice. Any general information found at prestige-car-leasing.co.uk or otherwise is no substitute for your own qualified tax or legal advice.
Personal Contract Hire
Personal Contract Hire, or ‘PCH’ for short, is the lower cost, zero risk way to privately lease a new car.
As higher value prestige cars are more likely to possess those notoriously unpredictable future residual values, Personal Contract Hire is exceptionally suited to individuals who want to drive a superior model from a prestigious manufacturer, culminating in a perfect ‘Prestige Car Leasing’ solution.
It’s true, premium brand cars depreciate & more recently sometimes at eye-watering rates, but the idea we could make a desirable prestige car more affordable to a personal customer, without them ever having to take on ownership or pay a sizable lump sum as an upfront payment, really took off when Personal Contract Hire first launched in 2001.
Personal Contract Hire
Personal Contract Hire is a credit agreement between you, the consumer & a lender. This arrangement is one whereby you’ll drive but never own the vehicle & therefore best explained as the long-term ‘lease’ of your chosen new car for an agreed period. In return for your extended commitment, there’s more time for the lender to manage the car’s projected depreciation & because you’ve become part of a buying collective, typically you’ll benefit from generous reductions translating into a very competitive monthly rental.
Monthly rentals for Personal Contract Hire are calculated from a combination of the purchase price & estimated future resale value. The bit in the middle, the vehicle’s projected depreciation, is the part you’ll be paying for, this the main reason you’ll find such variability of pricing & different Personal Contract Hire offers at varying times of the year.
Sometimes it’s a good idea to keep an open mind on your final choice of prestige car lease, this way you might actually find a lower Personal Contract Hire rental on a more expensive model than you’d initially considered, that’s if you are prepared to be a little flexible on matters like colour, engine type or even how quickly you might be able to take delivery. When prestigious manufacturers are looking to ‘cut a deal’, the recommended retail price only tells part of the story, so this is often an excellent opportunity to bag yourself a Personal Contract Hire special offer.
Estimated resale values are never your problem with Personal Contract Hire, they are exclusively a responsibility & risk of the lender, but one thing’s fair enough, the more miles you cover the lower a lender’s likely resale value will be, hence your monthly rental will more expensive & so best to estimate your total contracted mileage carefully.
In summary, Personal Contract Hire agreements are straight forward & easy to understand. There are flexible options on initial payment, followed by further monthly repayments over an agreed period. At the end of the deal, your car will be collected, but you need to make sure things like the spare keys, driver manuals & equipment you could have removed, like head restraints, are all enclosed within the car on the day of collection. If you’ve exceeded the total contracted mileage there will be additional, but reasonable, charges to pay. The same can be said if the general status of your car falls outside of the conditions deemed as fair wear & tear, but if you’ve cared for the vehicle as if it were your own like most individuals do, then there’s usually nothing else to pay.
If you think about it, nearly every private owner of a new or almost new car is in effect leasing their vehicle, even if they didn’t take out a Personal Contract Hire agreement, but some folk just haven’t looked at it this way (& they probably should). On occasion, even today we still hear comments like “But I’ll have nothing to show at the end of the lease?” So, let’s take a moment to understand better why Personal Contract Hire is ‘the’ way to drive a new prestige car & ownership is a thing of the past.
Remember the moment when you purchased your last car; it was a nice feeling, the smell of the new interior or the perfect coat of paint all added to the experience — perhaps using your own cash or some sort of loan, possibly even a hire purchase with a cash deposit or the balance from a part exchange? You paid the asking price, or maybe you haggled for a deal, perhaps you settled on an older model or a nearly new car was that significant saving off the list price seemed a good idea at the time?
Either way, you drove the car for several years, paid for each year’s road tax as & when, but had no idea how much your new car would have been worth in the future, you might even have found this unsettling? Maybe the used car market boomed & you swerved that ‘downturn’, but at some stage, the new car effect wore off or you just fancied a change, whatever the reason, you decided to sell the car back to a retailer or perhaps some other way, to realise the highest amount. Either way, did you get the price you wanted & did you enjoy the experience? Probably not! Did you receive less than you thought you should or had hoped for? Maybe?
One thing is for sure, the sale price you settled on for your old car was a lot less than you paid. When you add back in the interest charges on a traditional loan, or the better deployment of your savings if invested elsewhere onto the whole balance, plus the actual depreciation you’ve experienced, the picture starts to become a lot clearer & why Personal Contract Hire is such a good idea.
The fact that you’ve been leasing all along, just using your own money to fund things, taking on all the resale risk, indeed for most people doesn’t add up & Personal Contract Hire has transformed the car buying attitudes of thousands of private individuals over the years who in the future will always lease & never own.
Put, owning your vehicle is typically more expensive & certainly more time-consuming, so leasing with a Personal Contract Hire is more convenient, more affordable, and you’ll enjoy all the benefits of a new prestige car & most certainly without any of the risks involved with vehicle ownership.
The advantages of Personal Contract Hire:
- Future vehicle residual & resale values are not your concern
- Low initial outlay, but options to pay more if that suits you best
- A choice of the rental period, from 24 to 60 months
- Annual road tax included within the monthly rental
- Exiting the agreement with a pre-agreed termination charge
- Competitively priced Maintenance packages are often available
- Know where you stand with ‘whole life’ agreement costs
- Look after your vehicle & there’s a simple ‘hand back’ process at the end
- Perhaps afford a car of a higher retail price than you thought possible
- Perfect for Prestige Car Leasing
Key Areas for consideration, is Personal Contract Hire right for you?
- Termination charges apply when for whatever reason you end the agreement early
- You will never own the vehicle
- Changes in your circumstances might mean you could no longer afford the rentals
- You’ll need to be free from an adverse credit history
- If you don’t look after the vehicle, or put things right, charges will be payable at the end
- Fully comprehensive insurance cover, with you as the named driver without exception
- Changes in the prevailing rate of VAT will influence the total balance repayable
- Changes to the annual rates of road tax will impact the total balance repayable
* Subject to terms and conditions of a credit agreement with the lender.
Important Message – We are not an IFA & do not offer qualified tax advice. Any general information found at prestige-car-leasing.co.uk or otherwise is no substitute for your qualified tax or legal advice.
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