Knowles PCH Car Scheme

Leasing FAQs

Knowles Associates use Arval UK Limited and Maxxia Limited on our panel of lenders. Their terms and conditions are different. Please carefully read all your documentation before signing an order.

A personal contract hire (PCH) agreement involves you signing a contract to lease a car for a fixed period, with a specific amount of miles permitted per annum. You will pay an initial deposit prior to delivery of the car and then a monthly payment until the end of the agreement.

The funder will assess your suitability for finance and require five years of employment, address and bank history to run a credit and affordability check. They will also assess joint applicants, which is useful for individuals who want to lease cars for members of their family.

The broker is the legal owner of the vehicle. The consumer is not the legal owner of the vehicle and will not be named on the V5 document. There is not an option for you to own your vehicle throughout or after completion of a PCH agreement.

A lot of people are unsure what the payment structure of a PCH agreement means.

Here is a simple breakdown with an example:

Example: Initial payment+ 35 payments. This would be a 3-year contract made up of 36 individual payments. The initial payment is the amount you wish to pay prior to the standard monthly rentals being paid.The initial payment is followed by 35 standard monthly rentals. e.g. number of payments 36 (1 + 35)

Non-refundable deposit £1,000.00
First Finance Payment £200.00
Initial Payment£1,200.00
Regular Payment 35 x £200.00

The non-refundable deposit is not returned to you at the end of the agreement.

Arval UK Limited collect the Initial Payment 10 days after delivery of the vehicle usually by Direct Debit.

Maxxia Limited require the Initial Payment 10 days prior to delivery of the vehicle.

No, we can't accept your vehicle as part-payment for your PCH vehicle.

Our minimum term for a PCH agreement is 24 months (two years); the maximum is 60 months (five years).

Maintenance covers all routine maintenance, servicing, tyres, batteries, exhausts and any necessary car repair costs but not accident damage. If the deal does not have the optional package, you will have to pay for maintenance and servicing.

Road tax is included as part of the PCH price and reflects the price of road tax at that time. If the road tax cost increases during your contract you will be sent an invoice to pay the difference, this also works the other way too, if road tax is reduced you will be sent a cheque to give you the difference back. The broker will tax the vehicle for you and send you a notification to let you know this has been done.

No, insurance is not included as part of the monthly PCH price and comprehensive insurance must be arranged by yourself prior to delivery of the vehicle.

When you are looking for an insurance quote on a PCH car, the insurer will ask if you are the registered keeper and legal owner. At this point you would respond ‘no’ and fill in further details about the company you are hiring from. You will be informed the name of the legal owner during the application.

Arval UK Limited enable you to end your PCH policy early, referred to as Termination. Please refer to your hire agreement.

Maxxia Limited enable you to end your PCH policy early, referred to as Voluntary Early Terminate.

1. If your vehicle has a total cost price (including options and accessories) of less than £40,000, the Terms and Conditions of your Hire Agreement provide you with the right to terminate the Agreement before the end of the Period of Hire. Further details will be included within the Hire Agreement that you will sign.

2. If your vehicle has a total cost price (including options and accessories) of £40,000 or more, the Terms and Conditions of your Hire Agreement do not provide you with the right to Voluntary Terminate the Agreement before the end of the Period of Hire.

Yes, but please note that this will usually mean altering your monthly payments.

If the damage is within Fair Wear and Tear standards, you will not be charged. If the damage is more severe, this should be fixed as soon as possible and prior to returning the vehicle at the end of contract to avoid charges. All repair work must be carried out at a manufacturer approved repairer using only genuine parts. You will be provided with details of the Fair Wear and Tear standards as part of your application.

Typically, the insurance company will negotiate directly with the Service Provider as the registered owner of the vehicle. If there is a difference between the value of the vehicle and the amount of the loan outstanding, you will be liable for the difference. You may want to consider Early Termination insurance or G.A.P insurance to cover you for any costs.

If you go over your agreed mileage, there is a surcharge to pay for each mile above this. The charge per mile varies from car to car; the actual excess mileage rate will be provided in your Hire Agreement.

Prior to the end of your contract we will get in touch to remind you that your vehicle is due to be returned. On the day, an initial appraisal will be done to review the vehicle against the industry standard fair wear and tear guidelines. The fair wear and tear policy ensures you will only pay for damage that is not seen as arising from day to day use.

It may be possible to extend your lease for an additional fixed period, but there is no option to own your vehicle.

As a responsible lender and FCA-regulated company, the funder will perform a credit check before completing a PCH agreement. This is necessary to protect both you and the funder, by ensuring that the vehicle you are applying for is affordable.

All cars are supplied from manufacturers' dealer groups. We have a preferred panel of dealers that offer excellent customer service levels to our customers.

You can lease as many cars as you can afford! Please be aware that applying for a second vehicle will impact your credit rating. You should ensure that you can afford the monthly repayments on leasing more than one car before enquiring.

Yes, this is not a problem. There is a fee to transfer the number to the car and a fee to transfer it back again. Please phone us for further details on 01206 252300.