Car hire and leasing can expensive and getting out of a contract early can be difficult especially if you don’t know what type of contract you’re entering into. In today’s episode, Mark dives into the details of car leasing, contract hire and PCP contracts and explains the most cost-effective way of controlling, owning or renting your vehicle. 

KEY TAKEAWAYS
Contract (leasing) hire - the term contract is interchangeable with leasing and is a fixed agreement, usually 24,36 or 48 months and you are expected to fulfil the contract. Essential the monthly payment has been calculated over many months. Therefore if you’re looking to end the agreement early you will usually have to pay 50% of the remaining rentals if you’re looking to give the car back early. The disadvantage of contract hire is that they are not particularly flexible. If you’re concerned about ending your contract hire seek advice from the supplying dealer or credit broker to offer a shorter agreement.  
PCP (Personal Contract) Hire- At the end of the contract you either pay the remaining value of ‘balloon’ payment, you sell the vehicle or you return it. Should you wish to end the agreement early the common agreement is to pay 50% of the remaining rentals or return the vehicle to the finance company. With PCP you are able to enter into a process called voluntary termination giving you the option to return the vehicle to the company when you’ve paid 50% of the amount payable or more. This can be referred to as the rules of halves and thirds.  
Many car lease agreements have a buy-out option and will usually credit a percentage of the lease payment towards that purchase and is commonly least expensive way of getting out of a car lease. In order for it to make sense the resale value of the car needs to be equal or more than the buy-out value of the car. However, if you’re looking to get out of your lease so that you can purchase a new car be careful re-entering into another agreement especially with the same dealership as they will roll over outstanding payments on your old agreement into a new finance agreement.  



BEST MOMENTS
“With a contract hire You will usually have to pay 50% of the remaining rentals. From my experience, they will try to make you pay all of them.” 
“Car dealers love nothing more than for old customers to come back in and purchase a new car as they will make money on the old sale and the new one” 
“Get everything down on a spreadsheet to work out the total cost to get in and out of these leases” 
“Focus on the P&L and APR before purchasing a car” 
“Dealers love talking about monthly payments” 



VALUABLE RESOURCES
Centralleasing.com
Appliedleasing.com 
Leasing.com 
Freedomleasing.com 

ABOUT THE HOST

Mark Homer is an entrepreneur investor.  He has worked with investment since he was 15 years old using the laws of wealth! He is a spreadsheet analyst with an impressive following from major publications including BBC Radio, The Wall Street Journal, The Independent, and co-authoring the UK’s best-selling property books.  Mark has always looked for the best investment vehicle, and at the end of 2007 with Rob Moore the co-founder of Progressive Property his joint portfolio produced more profit than any of the other investments he’d tried in the last ten years, combined.  

CONTACT METHOD
Email: Markhomer@progressiveproperty.co.uk
LinkedIn: https://www.linkedin.com/in/markhomer1
Facebook: https://www.facebook.com/markprogressive
Twitter: https://twitter.com/markprogressive

Car hire and leasing can expensive and getting out of a contract early can be difficult especially if you don’t know what type of contract you’re entering into. In today’s episode, Mark dives into the details of car leasing, contract hire and PCP contracts and explains the most cost-effective way of controlling, owning or renting your vehicle. 
KEY TAKEAWAYS 
<ul>
<li data-leveltext="-" data-font="Calibri" data-listid="2" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Contract (leasing) hire - the term contract is interchangeable with leasing and is a fixed agreement, usually 24,36 or 48 months and you are expected to fulfil the contract. Essential the monthly payment has been calculated over many months. Therefore if you’re looking to end the agreement early you will usually have to pay 50% of the remaining rentals if you’re looking to give the car back early. The disadvantage of contract hire is that they are not particularly flexible. If you’re concerned about ending your contract hire seek advice from the supplying dealer or credit broker to offer a shorter agreement.  </li>
<li data-leveltext="-" data-font="Calibri" data-listid="1" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">PCP (Personal Contract) Hire - At the end of the contract you either pay the remaining value of ‘balloon’ payment, you sell the vehicle or you return it. Should you wish to end the agreement early the common agreement is to pay 50% of the remaining rentals or return the vehicle to the finance company. With PCP you are able to enter into a process called voluntary termination giving you the option to return the vehicle to the company when you’ve paid 50% of the amount payable or more. This can be referred to as the rules of halves and thirds.  </li>
<li data-leveltext="-" data-font="Calibri" data-listid="4" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Many car lease agreements have a buy-out option and will usually credit a percentage of the lease payment towards that purchase and is commonly least expensive way of getting out of a car lease. In order for it to make sense the resale value of the car needs to be equal or more than the buy-out value of the car. However, if you’re looking to get out of your lease so that you can purchase a new car be careful re-entering into another agreement especially with the same dealership as they will roll over outstanding payments on your old agreement into a new finance agreement.  </li>
</ul>
 
BEST MOMENTS 
<ul>
<li>“With a contract hire You will usually have to pay 50% of the remaining rentals. From my experience, they will try to make you pay all of them.” </li>
<li>“Car dealers love nothing more than for old customers to come back in and purchase a new car as they will make money on the old sale and the new one” </li>
<li>“Get everything down on a spreadsheet to work out the total cost to get in and out of these leases” </li>
<li>“Focus on the P&amp;L and APR before purchasing a car” </li>
<li>“Dealers love talking about monthly payments”  </li>
</ul>
VALUABLE RESOURCES 
<ul>
<li><a href="Centralleasing.com">Centralleasing.com</a></li>
<li><a href="Appliedleasing.com ">Appliedleasing.com </a></li>
<li><a href="Leasing.com ">Leasing.com </a></li>
<li><a href="Freedomleasing.com ">Freedomleasing.com </a></li>
</ul>
ABOUT THE HOST 
Mark Homer is an entrepreneur investor.  He has worked with investment since he was 15 years old using the laws of wealth! He is a spreadsheet analyst with an impressive following from major publications including BBC Radio, The Wall Street Journal, The Independent, and co-authoring the UK’s best-selling property books.  Mark has always looked for the best investment vehicle, and at the end of 2007 with Rob Moore the co-founder of Progressive Property his joint portfolio produced more profit than any of the other investments he’d tried in the last ten years, combined.  
CONTACT METHOD 
<ul>
<li data-leveltext="●" data-font="Noto Sans Symbols" data-listid="3" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Email: <a href="mailto:Markhomer@progressiveproperty.co.uk">Markhomer@progressiveproperty.co.uk</a>  </li>
<li data-leveltext="●" data-font="Noto Sans Symbols" data-listid="3" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">LinkedIn: <a href="https://www.linkedin.com/in/markhomer1">https://www.linkedin.com/in/markhomer1</a>  </li>
<li data-leveltext="●" data-font="Noto Sans Symbols" data-listid="3" aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Facebook: <a href="https://www.facebook.com/markprogressive">https://www.facebook.com/markprogressive</a>  </li>
<li data-leveltext="●" data-font="Noto Sans Symbols" data-listid="3" aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">Twitter: <a href="https://twitter.com/markprogressive">https://twitter.com/markprogressive</a>  </li>
</ul>

Investing, business, finance &economics - Mark Homer has the experience to help you with many of your questions & challenges. Mark My Words is a successful, eccentric & introverted businessman’s experience of 20 years with no waffle, ads, bravado or big pitches. Mark will interview the worlds most successful business, finance & money experts as well as impart his knowledge in a factual, direct manner. Mark runs & owns multiple businesses & property portfolios so teaches you what he does on a daily basis. A contrarian investor & capitalist, Mark will help you raise more finance, make more money & grow your business empire.

Advertisement