Q. What is it?
A. Personal Contract Hire (PCH) gives you access to a brand new vehicle for a fixed monthly payment, with a contract length and mileage allowance tailored to suit your needs. You will sign an agreement directly with Arval. This means that if you leave your job the car remains with you and the rental payments continue as per the contract.
Additional services such as maintenance and insured vehicle options can also be added to your lease.
Q. Will I pay Company Car tax on the Benefit in Kind?
A. No, as this is a personal contract there is no Company Car tax.
Benefit in Kind (BIK) is any benefit which employees receive from their employment in addition to their basic salary. These benefits may include, but are not limited to, a car or private medical insurance. The value of the BIK is calculated in accordance with HMRC rules and income tax is payable on this value. As this agreement is a personal contract, there is no company car benefit in kind.
Q. Is there a Credit Check?
A. Yes, as a PCH vehicle is a finance agreement between you and the lease company, you will need to have a credit check at the outset.
Q. Who is responsible for the road tax
A. Arval will tax your vehicle. This is included in your rental payment.
Q. Who pays for servicing and tyres
A. This depends on whether you put a maintenance pack onto your vehicle. If so, Arval will cover the cost. If not, you will need to pay for this as required. You are responsible to ensuring your car is maintained and legal.
Q. Who organises and pays for insurance
A. This depends on whether you choose Arval Total Care (ATC) for your vehicle. If so, in the event of an incident, Arval will arrange the repair and cover the cost of the damage. Any damage to a third party as a result of an accident will be covered by Arval’s Third Party Liability insurance policy
Q. Who provides breakdown cover?
A. This depends on whether you choose to include breakdown in your payment. If so, Arval will organise breakdown cover for you. If not, you will need to organise this as required.
Q. What happens if my car is off the road?
A. You will need to organise your own alternative transport.
Q. What happens if I leave my employer?
A. You remain liable for payments. If you want Arval to take the car back early termination charges will apply and depending on your vehicle use - excess mileage and damage charges may apply.
Q. Do I have to pay any money upfront?
A. Yes there is an initial payment which tends to be equivalent to one, three, six or nine rental payments upfront as a deposit. The higher the deposit on a PCH the lower the monthly rental payment
Q. Who is responsible for any excess mileage charges?
A. You are. Vehicles are contracted for a length of time and a contract mileage is agreed upfront so that we can accurately assess the re-sale value and maintenance work required (if taken). If the vehicle goes over the agreed mileage there is a charge per mile (typically shown as a pence per mile). It is important to include as accurate a mileage as you can. You will be responsible for covering this cost at the end of the contract.
Q. What happens if I am a high mileage driver?
A. Your monthly rental payments are likely to be higher
Q. Who will pay for any damage when the vehicle is returned?
A. Any damage incurred during the vehicle life should be repaired prior to the vehicle being returned. Any damage on the vehicle will be compared to the industry standards and any damage above that, taking into account age and mileage will be rebilled to you. Full details can be found on https://www.arval.co.uk/customer-support/guide-returning-your-vehicle
Q. Who is the vehicle contract with?
A. You will sign a credit agreement direct with Arval.