Considering starting work as a private hire driver? Think about whether contract hire or rent-to-buy is the most suited choice for you in 2024. Clear and sensible advice that makes sense to a customer.
Starting Your Private Hire Journey
More people than ever are choosing to work as private hire drivers in 2024. Many people are now working on platforms like Uber, Bolt, and Ola to earn money on their schedule. You must make one important choice first before hitting the road — which car is suitable to get.
You have the choice between PCO car hire and rent-to-buy. Both options provide their benefits, risks, and expenses. Knowing how they work helps drivers decide what best suits their needs, habits, and future preferences.
What Is PCO Car Hire?
This car rental service is built for private hire vehicle drivers. Instead of owning a car, people who drive pay a weekly fee to use a fully licensed one. The cars have completed the testing process and meet all TfL requirements. So, it’s an ideal solution for new or occasional drivers.
Most hire companies add insurance and look for maintenance, breakdown protection, and service to your weekly payment. Because of this, drivers are not surprised by expensive repairs and do not have to spend time sorting out car paperwork.
Advantages of PCO Car Hire
The high flexibility comes from hiring through a peer company organization. Since there isn’t a contract keeping the car, drivers can hand it back without needing to plan too far in advance. This suits those who want to get an idea of the career while still holding down other jobs. It also works for people who want to protect their finances from unpredictable situations.
Most times, you pay little or nothing upfront. Drivers usually don’t need a deposit to join, and they can start earning on the same day. With a leased car, you don’t need to worry about its value when it’s time for resale or how much it’s worn out.
One more important feature is that you can update your video games in the future. If an updated or upgraded car appears, it is simple for drivers to make the switch.
What Is Rent-to-Buy?
Rent-to-buy takes a long time to complete. When you lease, you regularly pay money each week to help finance the car, but unlike renting, you won’t end up losing that payment. After paying off every bill for two to four years, the driver gets full control of the car.
Many permanent drivers choose this plan because they want to save for retirement. What they really want is to own their homes outright, so they work toward that goal.
However, you will usually have to deposit some money before you are given the vehicle. The costs each week are typically higher for PCH than for PCO hire. In some situations, deals exclude insurance or maintenance, so you’ll have to get those separately.
When to Choose PCO Car Hire
PCO hire is excellent for drivers who want freedom and low risk. It suits people who:
- Are just starting and playing it by ear for how long they will really carry this on
- Want some part-time work or flexible hours
- Are not ready to commit to a car purchase
- Need a vehicle that is already on the road with no hassle of maintenance
This option also allows drivers to remain on the road should their main car break down. Basically, this is a quick fix to keep the income rolling.
When to Choose Rent-to-Buy
Rent-to-buy is an option best for drivers wishing to:
- Remain in the private hire business for a couple of years
- Want to buy a car and stop paying rent
- Can afford a deposit and then a higher weekly payment
- Are ready to go for a long-term commitment
Over time, owning a vehicle can save you monthly payments and give you personal access after it’s paid off. But that’s the catch: being sure of your long-term plan. Walking away from a rent-to-buy contract is going to be tough. Unlike a PCO hire agreement, you can’t really cancel and walk away.
Final Thoughts
Both of these solutions work fine, but it just depends on the case. PCO car hire means you can be flexible, face little risk, and get going easily. Renting a car on a rent-to-own basis gives you ownership, plus you can save over time and steer your path towards the vehicle.
If you’re a driver who wants to test the ride-hailing business or need fast cash, renting a car is more practical. This strategy can be a good investment for anyone really dedicated to private hire driving. Take the time to review the contract, evaluate the prices, and consider what you hope to achieve in the future. What you choose today will help shape your driving tomorrow.