Key Details in a PCO Car Hire or Rent to Buy Contract You Shouldn’t Ignore
Hiring a PCO car or signing a rent to buy agreement is an important financial decision that requires careful planning. Drivers who understand and follow their contract terms have a stress-free experience with their car providers.
When signing a PCO car hire or rent to buy contract, many drivers focus on their weekly payments. However, there could be some hidden costs, mileage limits, and insurance policies that can affect their overall expenses over the contract period.
In this article, we have discussed some important points to check in a contract before signing.
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Article Highlights
Discover the most important things that a PCO hire or rent to buy contract should have, such as:
- Deposit policy
- Insurance coverage
- Mileage allowance
- Fair vs major damage, and more.
Deposits and Upfront Fees
PCO hire companies usually require a deposit before handing the vehicle to the driver. The deposit can range from £250 to around £500, depending on the company. Most of the companies refund the deposit if you return the car in good condition.
A refundable deposit gives you peace of mind that your investment is safe if you want to switch the hire company or no longer wish to work as a PCO driver.
When signing a rent to buy contract, check whether the deposit goes towards the final purchase or if it’s a separate cost.
Insurance Coverage
Private hire insurance is different from regular car insurance. It’s specially designed for PCO cars that carry paying passengers through app bookings.
When signing a PCO hire or rent to buy contract, check what type of insurance is part of the package. Is it comprehensive insurance or third-party only insurance?
The comprehensive insurance offers protection against theft, fire, or accidental vehicle damage. On the other hand, third-party insurance only covers damage or injuries to the third party.
Also Read: PCO Car Insurance Cost: A Complete Guide for Drivers
Fleeto offers PCO car hire and rent-to-buy contracts for private hire drivers with full comprehensive insurance. It provides more protection than basic third-party cover. Comprehensive insurance covers damage to your hired car from an accident. It also covers losses from fire or theft. This reliable coverage protects your income and keeps you earning stress-free.
Fair vs Major Damage Policy
Fair damage is the acceptable damage that comes with daily driving, while major damage requires professional repairs. A transparent contract should clearly explain the difference between acceptable and chargeable damage. It should also be in written form to minimise the risk of conflict.
Mileage Allowance
Full-time PCO drivers usually work 8-10 hours daily and cover hundreds of miles weekly. Always confirm that the mileage limit in your contract aligns with your weekly driving goals. If you are a full-time driver who prefers long-distance rides, then you need a generous mileage cap of about 800-1,000 miles per week.
Servicing and Maintenance
Most companies include maintenance, tyre replacement, and MOT in the weekly fee, while some charge a separate fee for these services. Always confirm your car provider’s policy. Having servicing and maintenance included in your weekly fee makes the costs more manageable and predictable.
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PCO Compliance
Transport for London (TfL) has strict criteria for private hire vehicles.
Reliable PCO car hire companies in London, like Fleeto, handle annual inspections and PHV licence renewals to confirm TfL compliance. Our cars also meet Euro 6 emissions standards to help you avoid the daily ULEZ charge, which is £12.50 per day. Getting a PCO car with us means you can drive without stressing about fines or suspension due to non-compliance.
Breakdown and Replacement Policy
Time is money in the PCO industry. Downtime due to breakdowns means lost income.
Many PCO hire companies in London offer breakdown cover with roadside assistance and a replacement vehicle if the repairs can’t be completed quickly. However, the time to offer a replacement vehicle may vary from company to company. Check how fast the company provides a replacement car in your contract.
The ideal time is usually one day because longer delays can impact your daily income.
Also Read: Why Breakdown Cover Is a Must in Your PCO Car Hire Contract
Final Thoughts
The right PCO car hire or rent to buy contract is essential to drive with peace of mind. Taking time to read contract terms thoroughly will help protect your earnings, reduce the risk of conflict, and keep you confident on the road. Ask questions to clear doubts and never rush into signing the contract before fully understanding your responsibilities and rights. This helps you make a profitable choice rather than one that stretches your budget.
Start Earning Today.
Frequently Asked Questions
What is the difference between fair wear and tear and major damage?
Fair wear and tear means small scratches from normal use. These are acceptable and don’t cost you extra charges. Major damage needs professional repair. This usually includes large dents or cracked windshields.
Why is the mileage allowance so important?
Your contract has a weekly mileage limit. Exceeding this limit can cost you extra fees. Full-time drivers need a high mileage allowance, as a low limit can hurt their earnings.
What should a good breakdown policy include?
Time off the road means lost money. A good policy offers a replacement car quickly, usually within a day.
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