Using a personal contract hire calculator to calculate your savings

Many people have heard that it is possible to save a lot of money on transport by simply hiring a car instead of purchasing one. While savings of any kind are always attractive, it can be hard to believe that renting a car on a long term basis can actually be cheaper than buying your own. However using a personal contract hire calculator may convince you otherwise.

Personal contract hire, or car leasing, is the term applied to a long term leasing contract between a leasing company and a private individual. There are many different contracts and deals available, and it is a good idea to shop around before committing to any one agreement. Generally speaking however, personal contract leases are worked out by factoring in the expected depreciation of the car during the lease period. For example, if you wish to hire a car for a year, the company will calculate how much value their car will lose in that time. In order to do this effectively, they will have to include mileage considerations. Therefore you will be expected to agree on a certain mileage limit with the company.

Once you have agreed on a certain mileage, the leasing company will be able to estimate the depreciation value of their car. This will be the fee that you are expected to pay in monthly instalments. Once you know what the fee will be, a personal contract hire calculator can help you work out how much you will save. You can find an excellent personal contract hire calculator at yahoo.com/car-finance/monthly-lease-calculator.html.

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