What is Personal Contract Hire ?
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.
Some important points that you need to know about leasing:
• Fixed Monthly costs - At the start of the contract, a fixed monthly cost will be agreed.
• Contract Mileage Limit - A mileage limit will be agreed at the start of the agreement. You will be advised of excess mileage fees if you exceed your estimations. In most cases this can be altered mid contract if you would like to change your limit.
• Your vehicle is delivered to your home or work address and when the contract is terminated it will be collected.
• Damage fees. There is no need to worry about unforeseen charges for damage. As members of the British Vehicle Rental & Leasing Association (BVRLA), Vehicle assessment is regulated by the BVRLA fair wear and tear guidelines which clearly states the procedures and pricing guidelines which is deemed fair for both the funder and the leasee.