What is Personal Contract Hire (PCH)
Personal contract hire, known also as PCH, is really a long term form of car hire. It is also often called car leasing. Regular monthly payments are made for the term of the personal contract hire agreement, after which the car is returned to the supplier. New car contract hire was historically used almost exclusively for businesses but in recent years it has seen an upsurge in usage thanks to the many benefits it can offer the individual.
Company car leasing is addressed separately on a page discussing Business Contract Hire (BCH).
As part of the personal contract hire agreement a lease term will be agreed, usually between one and three years, and an estimated annual mileage will be needed. This is important both to have some idea of the car’s value when it is returned and also to calculate the monthly contract hire rate. This rate can also vary depending on what is provided as part of the PCH agreement. Many drivers will take advantage of servicing and road tax being incorporated within the price, meaning they have no additional charges to worry about. Note that at the beginning of the PCH agreement a deposit is made, usually a multiple of the monthly payment and bear in mind that if the estimated mileage is exceeded there is a set charge per mile for everything over the estimate, so it is sensible to be as accurate as possible.
Benefits of Personal Contract Hire (PCH)
Personal Contract Hire allows individuals to enjoy running a car without any headaches. A set monthly cost, maintenance and servicing included and no need to try and sell the car on the used car market in the future. For many it is also a great way to change their car pretty regularly, being able to choose from the latest Vauxhall models when they come available.
Vauxhall Cars available on Personal Contract Hire (PCH)
Vauxhall Vans available on Personal Contract Hire (PCH)