Personal Contract Hire

What is Personal Contract Hire?

Personal Contract Hire (PCH) is the most popular way for private drivers to lease a brand-new car. You choose the car, an annual mileage allowance and a contract length - usually 24, 36 or 48 months - then pay an initial rental followed by fixed monthly rentals for the rest of the term.

The finance company owns the vehicle throughout. Your monthly payments cover the car's depreciation during your contract rather than its full value, which is why a PCH payment is typically lower than a loan or PCP payment on the same car. At the end of the contract, the funder collects the car free of charge and you're free to choose your next one.

Road tax is included for the duration of the contract, and because the car is brand new it's covered by the full manufacturer's warranty - so your motoring costs are about as predictable as they can be.

How it works, step by step

1. Choose your car and terms. Tell us the make and model you want - or your budget and needs - plus your preferred contract length and how many miles you drive each year.
2. Get your quotes. We compare our panel of funders and send you clear, personalised, no-obligation quotes.
3. Apply for finance. Happy with a quote? We'll guide you through a straightforward finance application. Approval usually takes one to two working days.
4. Sign electronically. Your order and finance documents are signed online - no printing or posting.
5. Take delivery. Your brand-new car is delivered free to your door, anywhere on the UK mainland.
6. Drive, then hand back. Enjoy the car for the contract term, then hand it back - or lease your next new car through us.

For more detail, see our full step-by-step order process.

What's included

• Brand-new car, built to your chosen specification
• Road tax for the full contract (at the initial rate)
• Full manufacturer's warranty
• Free UK mainland delivery and free end-of-contract collection
• Optional fixed-cost maintenance package covering servicing, routine maintenance and tyres

You'll need to arrange your own fully comprehensive insurance, and fuel or charging is down to you.

The benefits of personal leasing

• Lower monthly costs - you fund the depreciation, not the whole car, so your budget goes further.
• No depreciation risk - the funder owns the car, so falling used-car values are their problem, not yours.
• Predictable budgeting - fixed rentals, included road tax and optional maintenance make costs easy to plan.
• Always driving new - the latest safety technology, efficiency and warranty cover, every few years.
• No selling hassle - no part-exchange negotiations, no private sale, no haggling. Hand the keys back and move on.

Things to consider

• You won't own the car. There's no option to purchase at the end of a contract hire agreement - if ownership matters to you, ask us about alternatives.
• Mileage matters. Exceeding your annual mileage allowance incurs an excess mileage charge (pence per mile, set out in your agreement). We'll help you pick a realistic allowance up front.
• Condition counts. The car should come back in good condition for its age and mileage, in line with the BVRLA Fair Wear and Tear guide. Normal use is expected; damage may be charged. See our end of contract guide.
• Early termination can be costly. Ending the agreement early usually incurs charges set by the funder - so choose a term you're comfortable committing to.
• It's a credit agreement. Failure to maintain payments may result in termination of your agreement and the vehicle being returned to the funder.

Who can lease a car?

Personal Contract Hire is available to anyone aged 18 or over with a full UK driving licence, subject to a credit check by the finance provider. Funders look at your credit history and affordability. If you have concerns about your credit profile, talk to us - we'll be honest about your options before you apply, and applying through us means we can match you to the funder most likely to say yes.