Personal Contract Hire

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

Personal Contract Purchase

PCP finance is a very popular way of paying for a new car. It is attractive because of the freedom of choice and flexibility.

Features and benefits:

  • Low initial payment allow for accurate monthly budgeting
  • Fixed monthly payments
  • You may be able to refinance the balloon payment
  • No depreciation concerns if you wish to walk away at the end
  • Maintenance and servicing can be included
  • Fixed balloon or guaranteed future value to purchase payment when you first take out the contract
    Cost effective
  • Can be used to finance new or used vehicles

Things to be aware of:

  • You will have to make a decision at the end of the contract as to whether you wish to sell the vehicle, return it or Keep it - this is often seen as an advantage to most people.
  • You must have fully comprehensive vehicle insurance