Personal Contract Hire
A simple and cost effective way to fund a vehicle in your personal name
Personal Contract Hire (PCH), sometimes referred to as an Operating Lease, is a long-term vehicle rental agreement. Contracts typically range from 12 to 60 months and allow you to drive a new vehicle for a fixed monthly payment without the responsibility of ownership.
With PCH, the leasing company purchases and owns the vehicle, and you simply pay an agreed monthly rental for its use during the contract term. At the end of the agreement, the vehicle is returned to the leasing company, removing the need to worry about resale or depreciation.
Low initial outlay
Personal Contract Hire usually requires a relatively small initial payment compared with purchasing a vehicle outright.
Fixed monthly payments
Your monthly rental remains fixed throughout the agreement, making it easier to plan and manage your finances.
Predictable budgeting
With set payments and optional maintenance packages, many of the costs associated with running a vehicle can be built into one monthly amount.
No depreciation risk
The leasing company takes responsibility for the future value of the vehicle, meaning you are not exposed to fluctuations in the used car market.
No resale or disposal concerns
At the end of the contract you simply return the vehicle, avoiding the hassle of selling or part-exchanging it.
Road Fund Licence included
Vehicle Excise Duty (road tax) is included for the duration of the agreement.
Optional maintenance packages
Servicing, maintenance, and tyre replacement can be included within your monthly payment.
Optional breakdown and recovery cover
Roadside assistance and recovery services can be added for additional peace of mind.
Replacement vehicle cover
Some agreements offer a replacement vehicle if your car experiences a major mechanical issue.
Optional GAP insurance
GAP insurance may be available to cover the difference between your insurance payout and the outstanding finance if the vehicle is written off or stolen.
No option to purchase the vehicle
At the end of the agreement the vehicle must be returned to the leasing company, as Personal Contract Hire does not include an option to buy.
Early termination charges
Ending the agreement before the contracted term can result in additional charges.
Mileage limits apply
Contracts include an agreed annual mileage allowance. Exceeding this limit will result in excess mileage charges.
Vehicle condition requirements
The vehicle must be returned in accordance with the Fair Wear and Tear guidelines. Charges may apply for damage beyond these standards.
Insurance requirement
You must maintain fully comprehensive motor insurance throughout the duration of the agreement.