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What is Personal Contract Hire (PCH)?

What is Personal Contract Hire (PCH)?
4th December 2019
What is Personal Contract Hire (PCH)?

What it is? A fixed-term contract where customers pay an agreed monthly rental for a set period.

Who is it popular with? Customers who don’t want the financial risk associated with selling a vehicle and want fixed cost motoring.

How long does it last? Typically, it lasts for two, three or four years – though contracts sometimes can be formally extended for longer.

Is it available with maintenance? Yes

Additional points:

One of the major benefits is that there are no disposal worries, as the future value is underwritten by the leasing company so you have no depreciation risk.

Road fund licence is provided for the full term of the contract.

If you opt for a maintenance package, you are helping to fix your monthly expenditure.

Often manufacturers use this type of finance to promote special offer deals, the cash price of the vehicle is not disclosed so it has less effect on used car values.

If the vehicle exceeds the contract mileage an excess mileage charge will apply. Early termination charges may apply if you end the contract before the formal end date.

It is your responsibility to maintain the vehicle in accordance with the manufacturer guidelines, additional maintenance packages are available.

This is a hire product so you will not own the vehicle.

You will be liable to pay for any excess damage that is on the vehicle at the end of contract that is outside of the BVRLA Fair Wear and Tear Guidelines.

VIEW Our latest personal contract hire special offers here