Personal Contract Hire

Flexible, fixed cost leasing for private individuals



Personal Contract Hire (PCH) is way for private individuals to lease a brand new car using set monthly payments that are based on a pre-agreed contract term and mileage. PCH often works out to be a cheaper form of car finance than some purchase based options such as Hire Purchase. This is because you are only funding the difference between the value of the vehicle when new and the amount the leasing company anticipates it will be worth once returned at the end of the contract. There is also a business form of this vehicle finance known as Business Contract Hire.

Key benefits:

  • Fixed monthly payments that make it easier to manage the total cost of motoring
  • Flexible contracts built around each individual’s circumstances and requirements
  • Servicing, maintenance, breakdown and recovery can all be included within the monthly payment
  • No need to worry about negative vehicle equity

How it works:


Personal Contract Hire, also known as Personal Leasing, offers fixed cost motoring throughout an agreed contract term. As with Business Contract Hire, the vehicle remains the property of a leasing company and is simply hired back to you.

The vehicle rental amount is directly linked to how long you wish to use the vehicle for, and how many miles will be driven each year. In essence, the leasing company bases this charge on how much they think the vehicle can be sold for at the end of the contract.

Personal Leasing has become increasingly popular in recent years because it often helps private individuals drive a better car than they might otherwise be able to afford, with all the deprectiation risk being taken by the finance company.

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