As the name suggests Personal Contract Hire is simply contract hire for individuals
Personal Contract Hire (PCH) is based on a fixed term contract, where customers pay an agreed monthly charge, for the use of a vehicle for a previously agreed period. This is usually between 2-4 years and in between 1-9 payments as an initial payment to the manufacturer, once the vehicle has been delivered. For example:- 6+23 = 6 monthly payments initially, then 23 monthly payments after that.
It benefits customers wishing to eliminate the financial risk associated with disposing of a vehicle. Contracts are usually taken over two, three or four years.
PCH is very similar to business Contract Hire; both are based on a fixed annual mileage agreed on inception of a contract. You will need to decide how many miles you drive each year before quotations can be obtained. Once you have stated how many miles you drive in a year and considered which vehicle you would like to lease a quote can be created for you by one of our sales team. The average is 10k miles pa.
If you exceed the agreed allowance at the end of your contract you will pay an excess mileage charge, which will have been agreed upon prior to signing the finance agreement. The price for excess miles isn’t as bad as you would think, but it’s always best/cheaper to arrange at the beginning.
Please remember this when deciding upon you annual mileage. If you are looking to have predictable motoring costs adding maintenance to your monthly payment is easy. Maintenance is there to put your mind at rest should any challenges arise with your vehicle and generally covers servicing, routine maintenance, tyres, exhausts and batteries.
Please note that it is responsibility of the person named on the finance agreement to arrange and pay for fully comprehensive insurance for the vehicle. It is important that the vehicle is returned in accordance with the guidelines set out in the PCH finance agreement.
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