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.
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.
Alternative Finance Options
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