• Rental conditions can result in heavy penalties. You may have to pay penalties if: -You exceed the number of miles in your rental agreement. – You cannot keep the interior and exterior of the car in good condition. – You drive the car hard and cause considerable wear and tear on the power and appearance of the car. – You want to return the car before your contract expires. PCP is similar in many ways, but you can buy the car at the end of the deal. You may not know it, but the two most common ways to finance a car are Contract Hire (PCH) staff and Contract Purchase (PCP) staff. PCH-Leasing allows you to drive a new car every two years, with relatively low monthly payments and without worrying about the resale value of the car. PCP is similar, but gives you the opportunity to buy the car in the future. If you have a car, there are strict rules and restrictions, so make sure you understand how it works. If you drive a car, you`re essentially paying a company for the right to drive a car they own for a set period of time, normally two or three years. Their payments must cover the depreciation of the car during this period, so they are often cheaper than a car loan on an equivalent vehicle. Leasing can also be a good way to drive a newer model car for a relatively low cost.
Provisions relating to normal wear and tear It is accepted that some wear and tear of the car occurs during the rental contract. This can be expected and the car company will not pose any problem with a lessor returning a car that seems to have driven well during leasing. Where a problem occurs is when the car is damaged or signals a different use than what they consider normal for the vehicle. If the car company considers that the extent of damage to the vehicle exceeds normal wear and tear, the lessor is responsible for all costs related to the repair or replacement of the vehicle. Four out of five people with PCP plans do not choose to buy the car at the end of the contract (source: The Finance and Leasing Association). Is it likely that you will be one of them? If so, leasing a car by personal contract rental (PCH) may be cheaper for you. Be careful, though. If you can`t afford to pay PCH`s monthly payments and need to terminate the agreement, you may have to pay the full rental fee, which would end up costing you more. This car rental agreement (the „Contract“) defines the conditions under which [lessor`s name] (the „Lessor“), a company duly registered under the laws of [the State] with registered number [registered number] and its address registered at [ADDRESS], a vehicle [name of the lessee] (the „Lessee“) is a company duly registered and registered in accordance with the laws of [the State] with registered number [registered number] and which is registered has no registered address at [ADDRESS] (together, the „Parties“). Payments and penalties The lease agreement defines the leasing conditions and all penalties related to mileage overruns and wear and tear. The tenant should take the time to read the entire fine print regarding the payment and payment plan, in order to ensure that they are useful and do not create a situation in which the tenant has to pull out of his pocket more than what has been agreed. .