For the private individual the more traditional methods of buying cars i.e. hire purchase, bank loan or from savings are becoming less and less attractive as more sophisticated and cost effective methods become available. In addition, many companies are choosing to give their current company car drivers "cash" instead of a company car, to allow them to make their own arrangements, and therefore avoid benefit in kind taxation.

We offer three options to the private user, traditional Hire Purchase, Personal Contract Purchase (PCP) and Personal Contract Hire (PCH).

How does Personal Contract Hire work?

Personal Contract Hire delivers all the benefits of a company car to the private individual.

The monthly payment is calculated by taking the initial cost of the car, taking away the future estimated value, and dividing the difference over the number of months you require the car for (plus interest). As a leasing company we are allowed to reclaim all the initial VAT on the vehicle. This means that the monthly rental you pay is much lower as the cost of the car used to calculate the rental is lower by the VAT amount. You as the private individual will have access to our extensive buying power, which means the car costs less to start with, making the monthly rental even lower.

Personal Contract Hire gives the user a fixed equal monthly rental for a fixed contract term. At the end of the contract term you hand the car back and take delivery of a new one. No need to sell the vehicle privately and worry about its value.

Personal Contract Hire arrangements can also include a full maintenance package as part of the monthly rental. This provides full cover for all maintenance requirements from regular services, tyre replacements to more involved mechanical repairs. Because maintenance cover is provided as a fixed cost as part of the monthly rental, it removes the risk of unforeseen breakdowns and large repair bills.

Personal Contract Hire delivers a no hassle solution to running a car and as the costs are fixed and equal, it allows you to budget exactly for your car spend.

Business Contract Hire has become the most popular method of acquiring vehicles for small and large businesses alike. Contract Hire provides an all-inclusive package that encompasses all the costs associated with running a vehicle covered under a fixed monthly rental. Contract Hire is available on any vehicle make or model and not only provides maximum protection from risk for companies who use it, but is also highly flexible to suit exact requirements.

How does Contract Hire Work?

A Contract Hire arrangement is based upon a fixed contract term from 24 to 60 months and a fixed mileage for the contract. These parameters are chosen to suit your exact needs and expected usage. From these parameters a fixed monthly rental is calculated which remains the same throughout the contract aiding budgeting as all costs are known in advance.

Fully inclusive maintenance cover can also be included. Again, this is a fixed cost as part of the monthly rental, and includes all maintenance requirements including regular servicing, tyre replacement and major mechanical failure. It doesn't matter how much work is required the monthly charge does not change, and there is nothing else to pay. Peace of mind, with no risk.

At the end of the contract the car is handed back to coincide with the replacement, simple as that. No need to worry about disposing of the car at the end of its life and the associated risks regarding the value of used cars.

From an accounting point of view Contract Hire holds many advantages over traditional outright purchase. Contract Hire is VAT efficient with 50% of the VAT on the finance and depreciation element of the rental being reclaimable, and 100% of the services and maintenance element. Companies who outright purchase their vehicles cannot reclaim any VAT.

Contract Hire aids cash flow as it removes the need to tie up large amounts of capital in depreciating assets, capital that could be better invested elsewhere in the business. Rentals can be entirely offset against corporation tax (up to £12,000 capital value), a huge advantage compared to restrictive writing down allowances in the case of owned vehicles as assets.

"I wasn’t sure about what leasing a car would involve and had little time available to research models, prices, or contractual details – when you run a business, time is a precious thing, and spending effort looking at new cars simply didn’t seem to be a priority. I got in touch with Donna at DCMD as a result of an email they had sent (and a cancelled meeting!) and asked if she would be able to help.

Hilary Shields, Ascensys Ltd - Director (Peterborough Business club member)

"I have been dealing with DCMD for 3 years, since 2003. In that period, I can categorically confirm that this organisation are efficient, time responsive, listen to client needs and would benefit any company who have to lease vehicles. I thoroughly recommend DCMD"

Gary Stevens, Busy Bee Cleaning Services Ltd - Director

"It was the first time I'd leased a car and a friend recommended DCMD to me. I had several discussions with them to figure out the best option. The team at DCMD was knowledgeable, friendly and efficient. The car's great and everything has gone very smoothly. I am now looking to lease a second car from them."