Once you have decided which vehicle you want, the next big decision is how best to fund it. Here at ecofleet, we understand that the many different options can be a little confusing so please click on one of the options below and we’ll do our best to explain it to you.
If you’re still unsure which option is best for you or would simply like more information, see if you can find your answer among our many FAQs or feel free to contact us.
However, we do recommend that you discuss your situation with an independent financial adviser to ensure that you are selecting the correct package for your individual needs.
Popular with private individuals and those opting out of a company car scheme, personal contract hire provides fixed cost hassle free motoring. This option funds the long term hire of the vehicle with no preset option to purchase. PCH is a budget friendly alternative to traditional forms of finance such as HP or bank loans. PCH provides fixed cost motoring without the hassles of purchasing, reselling, depreciation or disposal. Maintenance packages can be included into the monthly payments to provide an ‘all inclusive monthly cost’.
What are the benefits?
- Low initial payments
- Ideal for people who like to change their cars every few years
- Fixed monthly costs allow accurate budgeting
- Maintenance packages can be included.
- Know exactly what your car is costing you every month
- No resale worry
- No depreciation risk
- Those opting out of a company car scheme can reclaim business mileage
- Road fund license is included for the term of the agreement
Personal Contract Purchase or PCP is another funding option designed for individuals and those opting out of company car schemes. PCP is a popular hassle free, cost effective and flexible method of financing the vehicle of your choice. You simply choose the vehicle you want, how long you want it for and your anticipated annual mileage. The finance company then sets a guaranteed future value (GFV) for the vehicle. At the end of the contract period you can either pay at the pre-agreed value and keep the car or simply hand it back (subject to mileage and conditions being met).
What are the benefits?
- Allows consistent and accurate budgeting
- Maintenance packages available – know exactly what your car will cost you each month
- Individuals can have the option to buy without having to take any depreciation risks
- Low initial payment
- GFV means monthly payments are lower than traditional HP
- Those opting out of a company car can reclaim business mileage
- Road fund license is often included
- Agreement covered by the Consumer Credit Act (CCA)
- Allows the option of changing your vehicle every few years without suffering any depreciation risks
The traditional way for the private individual to fund the purchase of a vehicle. You pay an initial deposit and then fixed monthly payments for the duration of the term (usually 1-4 years) at the end of the period you take ownership of the vehicle. The private individual assumes the risks of depreciation, maintenance, administration, resale and disposal. Monthly repayments on HP tend to be higher than other options such as PCH and PCP.
What are the benefits?
- Low initial outlay
- Fixed monthly costs
- Covered by the Consumer Credit Act (CCA).
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