Personal Contract Hire
Personal Contract Hire (PCH) is an agreement between an individual and a funder, which allows them to lease a new vehicle. All contracts are diffrent but they generally range between 2-5 years.
PCH is a very popular and affordable alternaive to vehicle ownership. To most people it does not make sense to invest in a depreciating asset when you can lease. Having a car on a lease keeps running costs to a minimum and makes budgeting much easier compared to vehicle ownership as you do not have the unknown variable of the vehicles residual value.