Personal contract hire (also known as personal leasing) is a long-term vehicle rental agreement. It is a solution for private individuals and is becoming an increasingly popular alternative to purchasing brand new vehicles among car users.

The key features of personal contract hire (PCH)

• PCH is the most common form of private car leasing and growing
• 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