Contract Hire – FAQ
This includes Personal Contract Hire, Personal Contract Hire Flex, Business Contract Hire, Business Contract Hire Flex
Before you buy
Contract Hire is a good option for people who would prefer to use a vehicle, rather than own one.
- Choose a vehicle for an agreed period up to 48 months in exchange for a fixed monthly rental which includes Road Fund Licence.
- There are no depreciation or vehicle disposal worries since you just return the vehicle at the end of the contract.
- Fixed price servicing and maintenance options are usually available with most contracts for an additional cost.
Need help choosing the right finance product for you? Use our Help Me Choose tool here.
Personal Contract Hire is available for personal customers only. Business Contract Hire is only available for corporate entities, e.g. limited companies, PLCs or limited partnerships.
| Personal Contract Hire | Business Contract Hire |
|---|---|
| Available for personal customers. It is not available to corporate entities, e.g. limited companies, PLCs or limited partnerships. | Only available to corporate entities, e.g. limited companies, PLCs or limited partnerships. The vehicle can be used for both business and private use. |
| Monthly payments are fixed and depend on the vehicle’s depreciation, lease term and mileage. | Monthly payments are generally lower than PCH. This is because some businesses can reclaim VAT. |
| You cannot reclaim VAT on PCH agreements. | Businesses can reclaim 50% of the VAT on the monthly payments if the vehicle is used for both business and private use. If the vehicle is used only for business, 100% of the VAT can be reclaimed. Corporation Tax: Monthly payments are typically tax-deductible as a business expense, reducing the company’s taxable profit. Benefit-in-Kind (BIK) Tax: If the vehicle is available for personal use by an employee, it is subject to BIK tax, which is calculated based on the car’s value, CO2 emissions, and the employee’s income tax band. |
Yes, we always do a credit search on the company or person applying for finance.
You will need fully comprehensive insurance.
When applying for finance you will be required to supply certain personal information, as well as be able to confirm your identity.
You will need to provide a full UK driving licence. We may also ask you for a further proof of address dated within three months of submission of your application. Acceptable proof of address includes bank or credit card statement, utility or council tax bills, or mortgage statements.
All regulated agreements have a 14-day cooling off period. An agreement is regulated if the customer is either a
- private individual,
- sole trader
- or partnership with 3 or less partners.
There is no cooling off period for unregulated agreements e.g. ltd companies on PCH.
New agreement
If you have not received your welcome pack which includes copies of your agreement, please contact us by telephone or email us at [email protected] or click here for our contact information.
Your agreement number starts with 2 letters followed by an 6 digit number in the following format: ‘SC123456’, your agreement number can be found on your original agreement documentation, welcome letter or any correspondence received from us via post.
The advanced payment is collected by Direct Debit 14 days after the agreement is executed (the date of vehicle delivery).
Your first rental may be taken the same month, but this depends on the date of delivery and the chosen date for direct debits to be taken.
Example below:
The first monthly hire payment will be applied the next month following delivery (If delivered in March, the first payment will be due in April).
In some circumstances it is possible that the first monthly payment may be collected before the advance payment. If you take delivery on 29th March and selected a payment date of the 8th, the first monthly payment will be taken by Direct Debit on the 8th April . The advanced payment would then be taken on the 12th April.
The date on which we take payment from the account can be changed. You can select one of the following dates, 8th, 16th, 24th or 31st.
If you would like to request a change to your payment date please complete and submit the form by clicking the button below.
Your payments will be taken by Direct Debit on the date you requested.
Your contract will refer to Road fund licence and any government levied fees, but it will not include the rates. We will invoice you separately for any additional charge, including the Expensive Car VED Supplement. For more information about the rates, visit Vehicle tax rates: Cars registered on or after 1 April 2017 – GOV.UK (www.gov.uk), or contact us here.
If you’re not happy with something, you can get in touch by emailing [email protected]. You have the right to cancel your agreement within 14 days from the date that you enter it under the Consumer Credit (Information, Cancellation and Additional Charges) Regulations 2013. This is referred to in clause 2.3 in your contract.
You should get your vehicle repaired by an approved Supplier so that it can be serviced in accordance with the manufacturer’s servicing recommendations. You should also let us know about the accident as soon as possible. Make sure you refer to your agreement for the full details.
You might have to pay additional fees to the DVLA. For more information, contact [email protected].
Your agreement will include any fees or charges you might have to pay. If you have any questions, you can ask our team by emailing [email protected].
Current agreement
You are free to take your vehicle abroad anywhere within Western Europe for a period of up to 28 days at any one time and must have evidence of insurance and breakdown cover. If you would like to travel outside of Western Europe or for a period in excess of 28 days, you must first gain written consent from Santander Consumer Finance.
You will not receive a V5 document for the vehicle. Contract Hire is a Lease product, and the title of the vehicle belongs to the leasing company and not the lessee/driver.
If the vehicle is stolen you are required to carry on making your monthly payments until your insurance company has resolved the matter. If you have informed us that the vehicle has been stolen but it is subsequently found and returned, please obtain a letter from your insurance company to confirm this. If the vehicle is not recovered your account must be settled in full once any insurance pay out has been made.
If you have selected servicing and maintenance with your agreement, please refer to your servicing and maintenance schedule. You can book your service online by visiting this page.
If you have not opted for service and maintenance, you must service the vehicle in accordance with the manufacturers recommended service intervals at a franchised dealer using genuine replacement parts.
MOT’s are not required for a new vehicle in the first 3 years. After which, a MOT is required annually.
When you return the vehicle you must ensure that it does not require an MOT test for at least two months following the end of the fixed period. If you are a Northern Ireland customer please refer to your national rules.
Yes, you can increase or decrease your annual mileage allowance once you have paid a minimum of 3 monthly rentals. If you are within the last 3 months of the term of your agreement you will not be able to modify your mileage.
You can request a mileage modification by completing our online form. However, you can only request up to 2 changes during the term of your agreement.
You can request a copy of an invoice by completing our online form, please click the button below.
It’s important that we are aware of any change to your personal details so that our records are correct. Click here to update your personal details.
If your vehicle is written off you are required to carry on making your monthly rental payments until your insurance company has resolved the matter. Where your vehicle has been deemed a total loss your account must be settled in full once any insurance pay out has been made.
Under the Data Protection Act we are only permitted to talk to you about your hire agreement unless you have specifically nominated a third party to speak on your behalf. To nominate a third party please contact our Customer Services department or complete a Third party Authorisation form. You can return the competed form via e-mail to Customer Services or via post to:
Number One
Great Exhibition Way
Kirkstall Forge
Leeds
LS5 3BF
Please note that whilst we may talk to a nominated third party about your hire agreement, only you, as the agreement holder, are able to make any changes to the agreement.
Yes you can. If you do wish to end your agreement early please click here to request a quote. Please be aware you will be liable for up to 50% of your remaining rentals plus any potential excess milage, and damages outside of the BVRLA Fair Wear and Tear standards.
If you have money worries please visit our Money Worries page. Information including who to contact in our team and external advice bureaus are available to you.
Before making any adjustments to the vehicle please contact customer services to discuss.
If you are experiencing any issues with the vehicle, please contact your supplying dealer in the first instance. If the dealers are unable to assist you, please contact customer services.
We will pay the fine and recharge you. You will also be charged a £30 fee.
For speeding fines and notifications from the Police, we will transfer the liability to you. The Police will then write to you directly regarding the fine or penalty charge notice. You will be charged a £15 fee.
If you purchased your service plan directly from the manufacturer, you might be able get a refund. No refund is given if the service plan was purchased through us.
Information on your maintenance package will be in your agreement.
Additional Service Terms
If you have chosen any additional services such as vehicle servicing and maintenance, then the appropriate terms are set out in the Additional Services Schedule which follows these Terms.
Information about early termination will be in your agreement.
- If the vehicle is declared a total loss you will pay the sums set out in clause 10.4.
- If you elect to terminate the agreement before expiry of the fixed period you will immediately release the vehicle to us and will pay the sums set out in clause 10.1.
At the end of your agreement
When returning your vehicle, you must return everything that was originally supplied, or a fee may be charged. This includes (but is not limited to):
- MOT Certificate (if applicable).
- Completed Service Book or Digitally Stored Service History. If your service book has not been stamped to show a service has been completed, please provide copy(s) of invoice(s). Ensure all sensitive personal information is removed or redacted from servicing records.
- Document copies of accident related work completed at an approved Bodyshop repairer during the contract.
- The master key and any spare keys (must be working).
- Spare wheel.
- Software manuals and SD Cards / Disks (if applicable).
- Wheel bolt key (locking wheel nut) (if applicable).
- Charging cables that were supplied with the vehicle (electric or plug in hybrid vehicles only). • Any other item supplied with the vehicle.
You can’t buy the vehicle under a Contract Hire agreement.
What to expect:
Your allocated inspector will call you to give an estimated time of arrival, either the previous working day or the morning of the Inspection day. You will also receive a call or text when they are on their way. We cannot book a specific time of day but the inspector will be able to provide a collection window.
Before the inspection, the vehicle should be cleaned inside and out. All inspectors have identification. They will record full details about the condition of your vehicle, including taking pictures if they need to.
Please note we cannot collect from a dealer and you must be present to sign the report. You will either be emailed or given a physical copy of the report and your vehicle will be driven away that day or within 3 to 4 working days of the inspection.
The appointment will take between 30 – 45 minutes. Any damage that has been identified will be recorded on an inspection report to our Defleet team.
Excess mileage charges may be due at the end of both Personal Contract Hire (PCH) and Business Contract Hire (BCH) agreements. The charges are applied if you have exceeded your agreed mileage limit. In such cases, a pence per mile charge is applied to the number of miles by which you exceeded your limit. The pence per mile rate is set at the outset of your agreement and is clearly shown within your agreement documentation.
To ensure we are fair and consistent we apply the British Vehicle Rental and Leasing Association (BVRLA) ‘Guide to Fair Wear and Tear’. To access the guide click here.
All charges and fees will be in your agreement. If you want more information or have a question, contact us by emailing [email protected].