Personal Contract Hire
Thank you for considering Personal Contract Hire (PCH).
PCH provides the convenience of using a vehicle for a fixed monthly rental.
Personal Contract Hire - Suitability Explanation
- PCH is a fixed-term and mileage-based agreement. It is important that your agreement reflects your predicted annual mileage.
- Exceeding your mileage will result in an excess mileage charge.
- PCH is a contract hire agreement suitable for selected vehicles. The vehicle will not belong to you at any point in the agreement, so you cannot sell the vehicle.
- You will pay an agreed number of fixed monthly rentals plus VAT at the prevailing rate for the chosen period of hire.
- At the end of the agreement, the vehicle must be returned to the finance company.
Benefits of PCH
- Fixed monthly rental payments.
- Flexible terms: Choose a hire period from 2 years with a total mileage up to 120,000 miles (maximum 40,000 miles per annum).
- Road Fund Licence: Included for the duration of the agreement (charges may apply if rates increase).
- Roadside Assistance: Provided by the manufacturer, subject to their terms and conditions.
- No depreciation concerns: Return the vehicle at the end of the agreement (subject to final inspection).
- Budget-friendly: Fixed monthly rentals can include additional services like maintenance, avoiding cash flow fluctuations.
Potential Downsides of PCH
PCH may not be suitable if:
- You wish to own or buy the vehicle.
- You might need to change your vehicle early (early settlement incurs charges).
- You would like to shorten your hire period by pre-paying.
- You are uncertain of your predicted mileage.
- Business restrictions apply (e.g., funders often do not allow vehicles to be used as taxis).
- You plan to export the vehicle or use it abroad for extended periods.
Change of Circumstances
Some finance providers do not allow agreements to be amended mid-contract. For example, if a new job increases your commute and exceeds your mileage allowance, you may be liable for excess mileage charges.
- We can check finance providers’ terms to confirm if mid-contract amendments are allowed.
- Consider any potential changes in your circumstances that may affect your ability to pay.
Potential Damage Recharge
When the vehicle is returned, it will be assessed against the BVRLA’s fair wear and tear policy.
- Damage such as scratched paintwork or damaged alloy wheels may incur charges.
- Finance companies follow BVRLA guidelines when assessing damage.
Early Termination
Exiting the agreement early may result in an early termination charge.
Maintenance Options
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Non-Maintained Contracts
- Includes delivery to a mainland UK address, Road Fund Licence, and collection at the end of the contract.
- Vehicles are brand new and come with the manufacturer’s warranty and roadside assistance (according to the manufacturer).
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Maintained Contracts
- Includes everything in non-maintained contracts.
- Additional services: Servicing, roadside assistance throughout the contract, and replacement tyres (subject to a fair wear policy).
Personal Contract Hire FAQs
No, the funder owns the vehicle.
We provide bespoke quotations in increments of 1,000 miles. Funders’ mileage policies may vary.
No, vehicles are delivered to your home or office address within mainland UK.
- The car is returned to the funder. You can:
- Apply for a new lease.
- Extend your contract (depending on the funder).
- Purchase via a third party (if allowed by the funder).
- We provide assistance for current customers, including access to the BVRLA’s fair wear and tear guide for return standards.
Yes, all cars must have an MOT after three years.
- A maintenance contract includes the MOT.
- For non-maintained contracts, you will need to pay for the MOT and any associated costs.
Yes, car tax is included for the contract length.
No, you must arrange fully comprehensive cover.
Maintenance is optional. Our PDF quotes show non-maintained and maintained prices, depending on the model, contract length, and mileage.