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Fiat brands move into personal contract hire market

The first move away from PCPs, or an attempt to squeeze out brokers?

Fiat’s finance arm has begun offering personal contract hire (PCH) packages on selected Fiat, Alfa Romeo and Jeep models from its dealerships, in a move which aims to strengthen its position in the growing PCH sector.

Private customers looking at a Fiat Tipo or 500X, Alfa Romeo Giulia or Jeep Cherokee, Grand Cherokee or Renegade will now have a factory-backed PCH option to compare with the traditional personal contract purchase (PCP) or hire purchase (HP) offers.

The new offering, called Be-Free, includes road tax, breakdown cover and roadside assistance and free GAP insurance finance waiver (which covers any early termination costs in the event of the car being declared a total loss).

Customers can choose terms from two to five years, with mileage allowances of up to 150,000 miles over the total duration. A variety of upfront rental payments is also available.

New ground for Fiat Chrysler Automobiles

The move into personal contract hire is potentially a significant one for Fiat’s brands, as controversy continues to swirl around PCP car finance, and it is likely that more models will be added to the above list in coming months. The move may also be an attempt by Fiat Chrysler Automobiles (FCA) to reclaim some of the finance business which is currently going to a large number of independent finance brokers currently monopolising the PCH market.

The new PCH offers are being managed by FCA Fleet Services, the contract hire division of FCA Bank, which is a joint venture between Fiat Chrysler Automobiles and French bank Crédit Agricole.

Stuart Masson
Stuart Masson
Stuart is the Editorial Director of our suite of sites: The Executivecondominium, and . Originally from Australia, Stuart has had a passion for cars and the automotive industry for over thirty years. He spent a decade in automotive retail, and now works tirelessly to help car buyers by providing independent and impartial advice.

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