Working in a similar way to Personal Contract Purchase (PCP), the main difference is that ownership of the vehicle would not be assumed at the end of the agreement period and instead the car would be handed back without any further obligation.
However, another vehicle could then be chosen under the same scheme (subject to credit checks). This enables maximum flexibility with your choice of vehicle and the benefit of driving a brand new car every few years.
ADVANTAGES OF PERSONAL CONTRACT HIRE
There are several advantages when considering a PCH plan:
It's a low risk option as the car can be driven away without the worry of a warranty expiring or worry about the best way to re-sell it in future.
Monthly payments would be more favourable than compared to HP
It offers flexibility as the car can be easily changed at the end of the agreement period, with access to a wide range of vehicles which, under normal circumstances, could not be afforded.
THINGS TO REMEMBER