Personal Contract Hire (PCH)

Personal Contract Hire works just like leasing or renting a car.  It’s only available on new cars, so with a PCH deal you can drive the very latest models for two or three years, making monthly payments, and then exchange your vehicle for a new one at the end of the term.

It’s a simple method of car finance. No deposit is needed – though there is an initial rental fee, this is often smaller than a typical deposit required with a PCP deal – and monthly payments tend to be lower compared to other forms of finance, such as HP. You’ll need to maintain these monthly payments to continue driving the car, so be sure you’re able to keep this commitment before you take out the agreement.

When comparing PCH car deals to find the best value, make sure you calculate all the costs. For example, one might offer lower monthly payments but a larger initial rental fee, while another has a much smaller rental fee and higher monthly payments. Work out how much you’ll actually be paying over different terms of agreement - two, three or four years – to understand what Personal Contract Hire will cost you.

Because you’re leasing the car, if the value of the vehicle depreciates it won’t affect you. You don’t own the car, so don’t need to worry about potential resale value; your monthly payments will remain the same during the duration of the agreement.

Like PCP, with PCH car deals there are often mileage limits, so calculate your annual mileage accurately. The lower your annual mileage limit is set, the lower your monthly payments might be, though this isn’t always the case, so do check.

Don’t be tempted to provide a much lower annual mileage estimate to try to save money – you’re likely to receive excess charges if you go over your mileage, so it’s better to build in some extra and make sure you’re covered.

You may also be charged if there’s any damage to the car, though servicing and maintenance can sometimes be included as part of the agreement.

You can secure a Personal Contract Hire agreement with Dick Lovett by following these simple steps:

1. Explore our range of new cars online, and select your next vehicle.

2. Decide on your deal – including length of agreement (24 to 48 months), monthly rental price, initial rental fee.

3. Set an annual mileage limit.

4. Select a servicing and maintenance plan (optional).

5. All done? Now, simply collect your new car. Contact us by email or telephone, or call in to your nearest dealership. You can find contact details for all our locations, and directions to our dealerships, here.

When your PCH car deal has ended, you just return the vehicle.

Unlike HP – where you pay monthly instalments over a length of time and then own the car at the end of the agreement – the vehicle doesn’t become yours when the deal concludes.

And, unlike PCP, you don’t have the option of paying a final lump sum at the end of the deal to buy the car outright, should you want to. Personal Contract Hire is a straight-up lease plan – you pay to drive the car for a few years, then hand it back.

So, while you won’t ever own the car, you benefit from being able to drive a brand new model every two or three years with no financial commitment to buying it.

You won’t need to find a large lump sum of money to do so. And, at the end of the PCH deal you can start an agreement for a brand new car, if you choose, or switch to another finance type if your circumstances have changed.

Find your next car finance deal with Dick Lovett.