Personal Contract Hire (PCH)

Personal Contract Hire (PCH) is a type of long term rental and will suit drivers who know they will be looking to choose another car once the agreement period is over.

Similar to the Personal Contract Purchase (PCP), the main difference is that ownership of the vehicle is not transferred at the end of the agreement and alternatively the car is simply returned to the dealership where it was originally purchased.

Under the same scheme (subject to credit checks) a new vehicle could be selected, enabling maximum flexibility with the make and model of vehicle. For those customers who like to have a different driving experience every few years, this agreement is ideal.


At the Start of the Agreement:

  • Agree upfront the full amount you wish to borrow (minus any deposit payment provided)
  • Your application for finance is then submitted to the relevant motor finance company and, when you pass their checks, the lender will pay for the car on your behalf.
  • Your monthly payments are fixed during the period of the agreement.

At the end of the Agreement:

  • The car is returned to the dealership with no option or obligation – simply hand back the keys and walk away.
  • The car can be used as a trade in by using any existing equity (if the guaranteed future value is lower than the current market value of the car) as a deposit for a new finance agreement. A completely new car may be chosen at this point

Benefits of Personal Contract Hire.

  • This is a low risk choice as the selected car can be driven away without worrying about the warranty expiring or having to think about the best way to re-sell it in future.
  • Monthly payments are likely to be more favourable than comparison to HP
  • The car can be easily changed at the end of the agreement and appeals to those seeking a versatile motoring experience.

Things to remember

  • As there will be a charge for each additional mile covered over the agreed level, It is best to be realistic when calculating annual mileage.
  • The car cannot be bought at the end of the period - it must be returned to the dealership.