Personal Contract Hire (PCH) is similar to business car leasing but is for individuals and involves leasing the car for a fixed period of time at an agreed monthly cost. It one of the most popular ways of leasing a car and offers a cost-effective alternative to car ownership. As part of the Contract Hire, all servicing and maintenance can be included avoiding any unexpected costs. Road Tax is included throughout the contract. At the end of the contract hire term the car is returned to the leasing company in a condition that meets BVRLA ‘Fair wear and tear’ guidelines, otherwise, additional charges may occur.

Avoid Depreciation Costs

With Personal Contract Hire you don’t at any point actually own the vehicle, so you do not have to be concerned about any resale value at the end of the contract. Once your contract is over you are free to walk away without further obligation. Personal Contract Hire offers the opportunity for many to own a new car that would otherwise be unaffordable.

Personal Contract Hire is just another form long-term rental agreement, unlike purchasing you don’t have to worry about depreciation, warranty or selling the vehicle on. Rates for contract hire is dependent on three factors, the make and model of car, duration of the contract hire and your average annual mileage.

Personal Contract Hire is normally cheaper than buying a new car and repaying a loan. There is no upfront cost, no need to worry about maintenance that occurs after a few years. To qualify for contract hire you will need an employment history for 3 years, UK Driving Licence, be over 18 years of age and have a clean credit history. After the contract is finished (usually 2-4 years) many people simply take up a new agreement and receive a new car.



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