Easy, hahaha! Have you ever rented a self-drive car for a day or a week? Well, Contract Hire or "Leasing" is exactly the same (except it's much cheaper), just for a longer period. Easy, isn't it? It's available for private individuals. You may have seen me turning Duncan Ballantyne down for investment on BBC Dragons' Den! With my deals, you get a brand new car with zero miles on the clock, delivered to your door. The new car is fully taxed and has the full manufacturer's warranty and AA cover. It has proper New Car Smell; you know this smell? MMMMM! You then run this new car for 12, 18, 24 or 36 months depending on the term, and run it within an agreed mileage limit (usually 10,000, 15,000 or 20,000 miles per year). If you exceed the mileage limit, you pay for extra miles at (typically) 4p - 10p per extra mile. This is known as the excess mileage rate.

At the manufacturer's service intervals, the car will need a service, which you are responsible for. Of course, as it's a brand-new car, tyres/brakes etc will probably last out the contract so you'll only have a basic oil and filter service to pay for. Local franchised dealer will sort out any warranty problems for free, but on most contracts (except VW group) any VAT registered garage can service car very cheap. Mainly, you can avoid manufacturer agents, they are damn expensive. You never have an MOT (except on occasional 3-year contracts), car is always too young. As a bonus to add to your lower motoring costs, you will get every subsequent year's road tax sent to you free of charge, saving you up to £385 per year, or £1,155 on a 3-year contract! (on occasional Daimler contracts, subsequent year's road tax is chargeable, this is less than 1% of my deals). Personal contract hire is a fantastic way to lock down your motoring costs for a private motorist, with no real risk at the end of the contract.At the manufacturer's service intervals, the car will need a service, which you are responsible for. Of course, as it's a brand-new car, tyres/brakes etc will probably last out the contract so you'll only have a basic oil and filter service to pay for.