Personal leasing (personal contract hire) is a type of vehicle leasing for individuals who wish to lease a vehicle solely for personal use.
A PCH agreement allows you to effectively ‘borrow’ a new car from a leasing company and pay a reliable, fixed monthly payment for the service. You may also be able to take out a servicing and maintenance package, allowing you to pay a little more each month to cover the costs of servicing, repairs and breakdown costs. This will ensure that your monthly vehicle expenses are as consistent as possible, providing you with better financial security.
At the end of the agreement the car is returned to the leasing company and you have the option to take out a new personal contract hire agreement on either the same car or a different car.
Below we have outlined just a handful of benefits to leasing a personal car. Please read our complete personal car leasing guide for more info.
- Higher Value Vehicle - Leasing allows you to drive a higher value car which you may not be able to afford if you were to buy the car.
- New Car Every Few Years - depending on the length of your lease agreement, you get to drive a new car every few years.
- Fixed Monthly Budget - your monthly payments are fixed throughout your contract and you also don't have to worry about the depreciation of the vehicle.
- Less Hassle – At the end of your lease, you can simply hand the car back, avoiding the stress of selling the vehicle and the expense of depreciation.