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