Personal Contract Hire

What is Personal Contract Hire?

Car and Van Personal Contract Hire

Like Business Contract Hire (BCH), Personal Contract Hire (PCH) involves leasing a car or van for an agreed period of time at a fixed monthly cost. For private individuals that means cost effective, flexible motoring.

The main difference between PCH and BCH is that the vehicle is funded by the individual rather than the business. As a result, the vehicle is not subject to Benefit in Kind tax.

All servicing and maintenance can be provided – giving you peace-of-mind that everything is running smoothly with no unpredictable costs.

THE KEY FEATURES OF PERSONAL CONTRACT HIRE ARE:

A comprehensive vehicle management package including (if selected) all servicing and maintenance
Flexible term and mileage options, tailored to your needs
Complete support and guidance throughout your time with us

HOW DOES PCH WORK?

Perfect for busy professionals, Personal Contract Hire is a simple and easy process designed to save you valuable time:

Choose your vehicle from our extensive online database
Agree your contract term and mileage. Maintenance including tyres and servicing can easily be added as an option
An appropriate fixed monthly payment amount is confirmed for the duration of the term
Your car will be delivered via an approved local dealer
At the end of your term, you simply return your vehicle to us. The vehicle should be returned to us in a condition that meets the BVRLA 'Fair wear and tear' guidelines, otherwise charges may be incurred. Fair wear and tear guidelines can be found here. You can then apply for a new vehicle with us

WHAT ARE THE BENEFITS OF PERSONAL CONTRACT HIRE?

You choose the manufacturer and model of car that you want, and we purchase it and can also manage and maintain it for you – it's very straightforward. All you do is pay one fixed monthly fee – keeping your costs low and predictable.

Hassle-free motoring – we do the legwork for you
Flexible payment structure – from 2 - 4 years
Running costs e.g. Maintenance tyres and servicing, can be included for easier budgeting
No risk of unexpected vehicle depreciation
The vehicle is not subject to Benefit in Kind tax
PCH gives you fixed cost motoring

WHAT ARE THE RISKS AND DISADVANTAGES OF PERSONAL CONTRACT HIRE?

The following do not fit the profile of intended customers for our Target Market:

Customers that have a volatile or uncertain monthly income so may not be able to afford the monthly rental or that are severely credit impaired.
Customers who have concerns about their ability to afford the monthly rental or that anticipate a change of circumstances that may impact on their ability to afford the monthly rental over the term of the agreement.
Customers that do not wish to be subject to a mileage allowance or that do not want to incur the potential risk of excess mileage or damage charges when they return the vehicle.
Customers seeking to acquire a vehicle for short term use.
Customers that do not intend to continue with the agreement for the minimum rental period due to the costs associated with early termination (typically 50% of remaining rentals) unless the customer is able to afford the termination.
Customers unable to afford additional costs associated with running the vehicle such as motor insurance, ongoing costs of maintaining the vehicle (unless covered by the optional maintenance package) and fuel costs.
Customers that do not wish to arrange their own motor insurance.
Customers that wish to take the vehicle abroad for a prolonged period of time.
Customers who are aged under 21 or over 80
Customers who wish to buy or own the vehicle
Customers who wish to use the vehicle for sub-hire purposes (such as taxi, private hire or chauffeuring)
Customers who wish to use the vehicle for driving instruction
Customers who wish to use the vehicle for Rallying
Customers who incur large volumes of Penalty Charge Notices
Customers who are not based in the UK
Customers who are in an insolvency arrangement