Personal Contract Hire/Leasing (PCH/PCL)

Personal contract hire (PCH, 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.

You pay to ‘rent’ the vehicle throughout the duration of your contract, and then return the vehicle at the end of the agreement, leaving the finance company to worry about depreciation values and disposal of the car.

How could PCH work for you?

If you choose to lease a car on a personal contract hire basis, you will make a series of monthly payments for the duration of your lease agreement (24 or 48 months, for example), having already paid an initial rental.

You pay for the use of the vehicle throughout your contract, and then return the car to the finance company at the end of the agreement without any further obligations, leaving you free to lease or purchase another vehicle.

In some cases (subject to approval from the finance provider), you may be able to extend the vehicle contract.

The key features of Personal Contract Hire:

  1. Fixed monthly rentals cover the rental of the vehicle, plus any maintenance options if chosen.
  2. The monthly rentals are calculated by taking the following into consideration:
    1. The cost of the vehicle.
    2. The contract period.
    3. Anticipated residual value of the vehicle (how much the vehicle is likely to be worth at the end of the contract).
    4. Mileage allowance (as chosen by you before the start of your contract).
    5. Any additional options, such as a maintenance contract.
  3. 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 benefits to you:

  1. Low initial rental.

  2. Fixed rentals for the whole package, making budget planning easier.

  3. Flexible terms to meet your finance requirements and driving habits – with variable contract duration and mileage terms.

  4. Maintenance of vehicles can be included in the monthly fees, spreading the cost.

  5. Allows you to use a vehicle that might otherwise be unreachable in terms of its on-the-road cost.

  6. When returning the vehicle at the end of your agreement, you do not need to worry about it depreciation or disposal


  1. Early termination can be expensive.
  2. If you have exceeded your agreed mileage, an excess mileage charge will be payable, worked out on a 'pence per mile' basis as set at the start of your contract.
  3. You must return the vehicle in a well maintained condition. Any damage over and above that stated in the Fair Wear and Tear Guide will be subject to additional charges.
  4. Vehicle must be insured with full comprehensive cover.
  5. You will never own the vehicle as there is no option to buy it.

Not sure if this is right for you? Take our 1 minute "Which finance option is best for me?" or get in touch and we'll help you


Rosie Beswick Testimonial

Fantastic service from start to finish. Given a wide choice of vehicles to select from. All questions answered quickly and clearly. Car arrived exactly on time, as ordered and to my door. What more can you ask.

Rosie Beswick

Nigel Lomax - TaxAssist Accountants Shrewsbury and Newport Testimonial

Stuart has advised a number of my clients who were looking to purchase a new vehicle. Everyone of them has told me about the great lengths that Stuart has gone to in order to find the best deal for them.

Nigel Lomax - TaxAssist Accountants Shrewsbury and Newport

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