Personal Contract Hire Cars

What is Personal Contract Hire?

PCH process at Stoneacre dealership

PCH stands for Personal Contract Hire and is a popular way to lease a car. This type of car finance is perfect if you don’t want to own the vehicle at the end of the agreement and like to switch your car up every few years.  

The truth is, depreciation can often put people off buying a brand new car. However, there’s one way to avoid the worry of losing money on a shiny new vehicle - Personal Contract Hire.

PCH packages are fairly flexible in how they can be set up, with such factors, such as the initial rental amount and agreement term able to be tailored around you and your needs.


Personal Contract Hire Explained

Red Alfa Romeo Stelvio driving on the road

With PCH, you’re essentially hiring the car and paying for what you use. 

When choosing PCH car, you'll need to decide on the agreement length and mileage restrictions with the finance company first. After this is done, you will pay a deposit which is also known as an initial rental. Then simply pay your monthly car payments. 

Once the contract is up, the car needs to be returned. You can then choose to finance a new car or in some cases, extend the original agreement. 


PCH Process in a Nutshell

New Vauxhall cars at Stoneacre Blackburn dealership
New Vauxhall cars at Stoneacre Blackburn dealership - mobile

Decide on the term & mileage  


The agreement term typically ranges between 24-48 months, with mileage being somewhere between 5000-30,000 annually.

Car leasing process at Stoneacre Chesterfield Volvo
Car leasing process at Stoneacre Chesterfield Volvo - mobile

Initial & monthly payments


If you choose a larger initial rental period, this means your monthly payments will be cheaper and vice versa. 

New blue Suzuki cars at Stoneacre Chesterfield Suzuki
New blue Suzuki cars at Stoneacre Chesterfield Suzuki - mobile

Hand the car back


Once the term is up, give the car back to the finance company and take out a new deal or walk away.

PCH Process in a Nutshell

New Vauxhall cars at Stoneacre Blackburn dealership - mobile

Decide on the term & mileage  


The agreement term typically ranges between 24-48 months, with mileage being somewhere between 5000-30,000 annually.

Car leasing process at Stoneacre Chesterfield Volvo - mobile

Initial & monthly payments


If you choose a larger initial rental period, this means your monthly payments will be cheaper and vice versa. 

New blue Suzuki cars at Stoneacre Chesterfield Suzuki - mobile

Hand the car back


Once the term is up, give the car back to the finance company and take out a new deal or walk away.

Personal Contract Hire Initial Rental 

The agreement starts similarly to other finance types, but the deposit is labelled as the 'Initial Rental' and is made up of many monthly payments. This Initial Rental combines the number of months the agreement is made up of to create what is referred to as the 'Profile'. 


For example, if your deposit consists of three monthly payments and there are 35 subsequent monthly payments to make, then the Profile would be 3+35.

Personal Contract Hire Deals 

New white Mercedes-Benz E-Class Coupe
New white Mercedes-Benz E-Class Coupe - mobile

Mercedes-Benz PCH Deals


New black Audi A3 Sportback
New black Audi A3 Sportback - mobile

Audi PCH Deals


New electric blue VW T-Cross SUV
New electric blue VW T-Cross SUV - mobile

VW PCH Deals


Historically seen as a way to source a company car, Personal Contract Hire deals are now gaining popularity with mainstream buyers. However, it can be difficult to choose from so many PCH car deals. 


At Stoneacre, we offer thousands of new and used cars nationwide, all at attractive prices. If you're not set on owning a car, then a PCH may be right up your street. You can enquire online, and we'll be in touch to discuss your finance requirements ASAP.

Things to consider when looking for the best PCH deal: 

  • Insurance and road tax

    Is it included, or do you need to pay it yourself? 

  • Manufacturer and model

    Research this beforehand, so you know exactly what type of car you want before getting into PCH agreement.

  • Trim

    It's equally important to compare the specs to get the best car for you and make sure all the must-have features are included.

  • Budget

    Don't forget to add in the running costs too - insurance and road tax (if not included), fuel, servicing and maintenance.

Photo of car interior against a mountain backdrop

Benefits of Personal Contract Hire

- Depreciation-free motoring as you are basically paying to use the car till the end of the contract

- Payments will usually be more affordable as there is no interest to be paid and you're not paying to own the car

- PCH deals can sometimes include maintenance packages to get servicing included in the payment

Close-up Interior of an Alfa Romeo Stelvio

Drawbacks of PCH

- You will be given an allotted annual mileage and if this is exceeded at the end of the contract, you will have to pay per additional mile (usually between 4-14.9p per mile)

- Any damage to the car that exceeds the fair usage policy will have to be covered by yourself

- The only two options you will have come the end of the contract are to either walk away or start a new contract on a new car. There is no option to buy like there is on Personal Contract Purchase

Personal Contract Hire FAQ

What's the difference between PCP and PCH? 

The main difference is what happens at the end of the contract. With PCP, there's an option to own or part-exchange a car towards a new one. On the other hand, it's impossible with PCH as the vehicle needs to be handed back to the dealer. 


How does Business Contract Hire differ from Personal Contract Hire?

As the name indicates, Business Contract Hire (BCH) is a leasing option for businesses, while PCH is intended for personal use. At the end of the contract, there's no option to own a car with both BCH and PCH.


Do you offer Personal Contract Hire with bad credit? 

Our specialist bad credit lenders should be able to help, even if you have less than ideal credit score. Read more in our guide to bad credit finance and contact our friendly finance team if you'd like to get PCH with bad credit to discuss options. 


Is it possible to take out Personal Contract Hire with GAP insurance?

Yes, in case the car you lease is stolen or has been in an accident, GAP insurance is invaluable to cover the shortfall from what the insurer pays. There is an option to add it to your PCH contract for an added cost. Find out more here.

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Representative Example

Cash Price£16,551.73
Deposit£1,578.78
Term49 months
Payment£367.83
Amount of credit£14,972.95
Fixed Interest4.99%
Representative APR10.62%
Total Charge for credit£3,449.86
Option fee (included in total charge for credit)£399.00
Total Amount Payable (Incl. Deposit)£20,001.59

We are a credit broker and a lender. We can introduce you to a limited number of lenders and their finance products. We will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Lenders may pay commission to us (either a fixed fee or a fixed percentage of the amount you borrow) for introducing you to them, this may be calculated in reference to a variable factor such as (but not limited to) the vehicle age, your credit score and the amount you are borrowing. Different lenders may pay different commissions for such introductions.

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