Personal contract hire (PCH) is a long-term vehicle rental agreement where you don’t have the option of buying the vehicle at the end of the agreement. Because of there being no need to worry about the depreciation and value of the vehicle, PCH is a popular alternative to other product like Hire Purchase (HP).

Key features of personal contract hire:

• PCH is the most common form of private car leasing
• Fixed monthly payments cover the rental of the vehicle
• The monthly rentals are calculated by taking the following into consideration:
  • The cost of the vehicle
  • The contract period (24 months, 36 months etc.)
  • Anticipated value of the vehicle (how much the vehicle is likely to be worth at the end of the contract)
  • Mileage allowance (as chosen by you before the start of your contract)
  • Any additional options, such as a maintenance contracts
• You never technically own the vehicle. However, this means you do not need to worry about the vehicle’s depreciating value

• Fixed rentals for the whole package, making monthly budgeting easier
• Flexible terms to meet your finance requirements and driving habits – with variable contract duration and mileage terms
• Maintenance of vehicles can be included in the monthly fees
• When returning the vehicle at the end of your agreement, you do not need to worry about it depreciation or disposal

At the end of the contract, the vehicle is returned to the leasing provider, meaning you are free to hire or purchase another vehicle.

If you have exceeded your agreed mileage, an excess mileage charge will be payable, worked out on a ‘pence per mile’ basis as set at the start of your contract.