Personal Contract Hire (PCH) involves private individuals paying an agreed monthly rental for the use of a vehicle. It is normally cheaper than financing a vehicle outright as you are effectively renting the vehicle and it does not belong to you. The contract is based on a fixed term and mileage and is handed back to the finance company once the contract period has ended.
Features and benefits:
- Contract terms available between 24 and 60 months (subject to the age of the vehicle at the start of the contract)
- Choose from any make or model of vehicle, new or nearly new
- Usage of the vehicle is provided over the contract period. Payments can include routine servicing and necessary repair costs (excluding accident damage), as well as breakdown & recovery
- Fixed monthly rentals allow for accurate monthly budgeting
- Road Fund Licence is provided throughout the contract period
- The end of contract process is easy; simply hand the vehicle back
- No depreciation or disposal risk
- You have the option of including maintenance in the finance package
- You have the option of extending the contract at the end
Things to be aware of:
- You bear the costs of any excess mileage
- Vehicle must be returned in a well maintained condition
- High fees for early settlement of the contract
- You do not have the option of owning the vehicle
