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Personal Contract Hire (PCH) is a type of car leasing agreement that allows individuals to hire a car for a fixed period of time, typically 2 to 4 years. With PCH, you can enjoy driving a brand new car without the burden of ownership.
With Personal Contract Hire, you choose a car and agree to a fixed monthly rental amount for a specific period, typically 2 to 4 years. You pay an initial rental upfront, followed by monthly rentals throughout the contract term. At the end of the contract, you simply return the car to the leasing company.
The monthly rental for a Personal Contract Hire agreement typically includes the cost of leasing the vehicle, road tax, and the option of vehicle maintenance. However, it’s important to check the specific terms of your agreement to understand what is included and what additional costs you may be responsible for.
Yes, a deposit, also known as an initial rental, is required for Personal Contract Hire. The amount of the deposit can vary depending on the car and the leasing company. It is usually equivalent to a multiple of the monthly rental amount.
In most cases, you are not allowed to modify or personalise the leased car. The car must be returned in its original condition, with only fair wear and tear accepted. Any modifications or damage beyond fair wear and tear may result in additional charges.
At the end of the Personal Contract Hire agreement, you simply return the car to the leasing company. You have no further financial obligations, unless there are any excess mileage or damage charges as per the terms of the agreement. You can then choose to enter into a new lease agreement for a different car if desired.
Personal Contract Hire agreements are typically fixed-term contracts, and terminating the contract early may result in financial penalties. However, some leasing companies may offer early termination options, subject to certain conditions. It’s important to discuss any potential early termination with your leasing provider.
If you exceed the agreed mileage limit specified in your Personal Contract Hire agreement, you may be subject to excess mileage charges. These charges are outlined in the contract and can vary depending on the leasing company and the specific agreement.
In some cases, it may be possible to extend the lease agreement for a Personal Contract Hire. This can provide you with continued use of the car beyond the initial contract term. However, it’s important to discuss the extension options with your leasing provider well in advance of the contract end date.
No, Personal Contract Hire agreements do not typically include an option to purchase the car at the end of the contract. The car is returned to the leasing company, and if you wish to continue driving a leased vehicle, you can enter into a new lease agreement for a different car.
The Lease Hub is a trading style of Sorbus Finance Ltd is an Appointed Representative of Wessex Fleet Ltd which is Authorised and Regulated by the Financial Conduct Authority, firm number 671619 . Sorbus Finance Ltd T/A The Lease Hub is an independent Contract Hire brokerage and not a lender, as such we can introduce you to a wide range of finance providers depending on your requirements and circumstances. We are not independent finance advisors and so are unable to provide you with independent financial advice.
Sorbus Finance Ltd may receive payment(s) or other benefit from the finance provider if you decide to enter into an agreement with them.
Sorbus Finance Ltd aims to provide our customers with the highest standards of service. If our service fails to meet your requirements, we will endeavour to find a resolution.
Whether you’re a business looking for efficient and cost-effective fleet solutions through our Business Contract Hire, an individual seeking the perfect personal vehicle with our Personal Contract Hire, or an organisation exploring the benefits of a Salary Sacrifice Scheme, we’ve got you covered.