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What is Personal Contract Hire

Personal Contract Hire

You’ve decided which new car you want from Eastern Western Leasing, but now it’s time to choose which finance option to use to get it. Personal contract hire (PCH) is one way of taking a car home today, but don’t worry if you’re wondering “what is personal contract hire?” – just read on to find out everything you need to know about this type of car finance. This is personal contract hire explained…

What is personal contract hire?

In a nutshell: personal contract hire – also often referred to as a personal lease – is the long-term rental of a new car available to individuals.

How does personal contract hire work?

With a personal contract hire agreement, you pay an initial deposit then make fixed monthly payments, which are made over the agreed contract length. When the contract ends you return the vehicle.


How does personal contract hire differ from personal contract purchase?

The key difference to be aware of with personal contract hire vs personal contract purchase (PCP) is that you own the car after reaching the end of a personal contract. However, it’s worth noting that you can usually hand back the car if you choose to, so long as you keep within the mileage and condition restrictions. Another factor to consider is that your car is not taxed with a PCP, but it is taxed under a PCH (you don’t own the car and therefore are not liable to keep it taxed).


Why is personal contract hire a good option?

Let’s take a look at a breakdown of the advantages of PCH:

  • You get to drive a car that otherwise would be too expensive to buy outright.
  • Monthly payments are usually cheaper than with other finance agreements (including PCP).
  • You have the freedom to change your car every few years.
  • There’s no need to worry about negative equity.
  • Maintenance packages are available, including MOTs, tyre checks and the fixing and repair of parts.
  • Road tax is included.

It’s worth noting that you won’t have the option to buy the car at the end, however this means you are free choose a different model as your next vehicle.

View Our Latest Personal Contract Hire Offers

So, is getting a new car with a PCH the right direction for you to take? Take a look at Eastern Western Leasing’s personal contract hire deals on a wide range of cars today, then speak with a friendly member of our experienced team to take the next step.

  • bvrla
  • Santander Consumer Finance Contract Hire (048586)
  • Lex Autolease
  • Mitsubishi HC Capital UK PLC
  • Arval - Broker