What is Personal Contract Hire (PCH)?
Personal contract hire (PCH) is a form of leasing for people rather than businesses that lets you have the use of a car for between one and four years. It is a great option if you want to drive a new car regularly and keep monthly payments down.
As with PCP deals, you’re only repaying part of the car’s value; the difference between these two forms of finance is that you don’t have the option of buying the car outright at the end of a personal contract hire agreement.
How does PCH work?
First, you need to decide how much you want to pay each month for the use of the car and how many miles you’ll be doing. Most deals will then require you to put down a deposit (usually the equivalent of eight to 10 monthly instalments) and then pay a number of fixed monthly payments. It’s best to opt for a longer deal rather than a shorter one, as the payments are usually lower on lengthier deals.
At the end of the deal, you simply hand back the car. You’ll be charged for any excess miles or any damage to the car, so it’s worth paying for repairs to be done and to have the car thoroughly cleaned inside and out before returning the keys.