Key features of personal contract hire

The key features of personal contract hire

• PCH is the most common form of private car leasing
• Fixed monthly rentals cover the rental of the vehicle, plus any maintenance options if chosen
• The monthly rentals are calculated by taking the following into consideration:
• The cost of the vehicle
• The contract period
• Anticipated residual value of the vehicle (how much the vehicle is likely to be worth at the end of the contract)
• Mileage allowance (as chosen by you before the start of your contract)
• Any additional options, such as a maintenance contract
• You never technically own the vehicle – it remains the property of the finance company.
• However, this means you do not need to worry about the vehicle’s depreciating value

The key benefits of PCH

• Low initial rental
• Fixed rentals for the whole package, making budget planning easier
• Flexible terms to meet your finance requirements and driving habits – with variable contract duration and mileage terms
• Maintenance of vehicles can be included in the monthly fees, spreading the cost
• Allows you to use a vehicle that might otherwise be unreachable in terms of its on-the-road (OTR) cost
• When returning the vehicle at the end of your agreement, you do not need to worry about it depreciation or disposal