Personal Contract Hire Agreement

Leases are rental options that allow you to rent a car for a fixed period of time. Like most leasing and financing options, a lease is divided into two parts. You first pay a down payment, then the monthly payments. The duration of your contract is usually between 24 and 60 months, with most agreeing on 48-month agreements. Personal Contract Hire (PCH) is a type of long-term rental that suits you if you don`t want to buy the car at the end of your contract and you don`t need to change the car before the end of the contract. You rent the car for an agreed period by making fixed monthly payments. When the contract expires, just return your car. You make fixed monthly rents for the period you enter into the contract. Once the contract is fully concluded, return the car. For you, this means that the money you will pay back will be the difference between what the car is worth now and what it is worth at the end of your contract (amortization) plus interest, which will be calculated on the full value of the vehicle. You pay this difference in monthly increments.

PCH is usually only available for new cars. If you are after affordable monthly payments – and the ability to further reduce costs by choosing a used car – then PCP financing could work for you. PCP gives you the option to make the car at the end of the agreement – as you should with a rental contract – or you can then buy it for the optional final payment agreed in advance. They pay for depreciation costs throughout the contract, not for the total cost of the vehicle. This may make PCH`s monthly rent lower than other forms of automobile financing, which take into account the total cost of the vehicle, such as rental sales.B. In addition, more prestige vehicles with lower depreciation rates are becoming more affordable. Personal rental contract or PCH, is a long-term rent that may be suitable if you do not want to buy the car at the end of the agreement. We call it “personal rent” on our website. You make fixed monthly payments over the agreed term of the contract and, when the contract ends, you return the vehicle. Personal Contract Purchase (PCP) is a financing product in which you make monthly payments on the value of your car.