PERSONAL contract hire – or PCH – is essentially the same as regular contract hire; apart from the fact that it applies exclusively for private individuals. Hirers obtain use of a new car for a contractual period and make fixed monthly payments to a car leasing company for the duration of the contract.
If you’re looking to hire a car long term and don’t want to buy it, the cheapest option is likely to be using PCH. Here are the details:
The lease agreement lasts 2 to 5 years.
You will need to undergo a compulsory credit check
You have to pay around three months’ lease upfront.
You never own the vehicle during the agreement and have to hand it back at the end of the term.
Sometimes you can get a maintenance package that covers things like annual car tax (road tax) or servicing.
13th of March 2018