Personal Contract Hire (PCH)

As the name states this vehicle leasing product is essentially contract hire for private individuals. It is often known as "PCH" or just as a "vehicle lease". Customers who suit personal contract hire do so because they are looking for a long term rental contract (lease) that offers fixed payments for a set period of time. This page aims to cover the key features, benefits and downsides of the product to help you make an informed decision.

Key Benefits

  1. Price - PCH allows private individuals to access fleet negotiated discounts to improve the affordability of a new vehicle.
  2. Budgetting - PCH offers fixed monthly rentals that can include additional services, such as maintenance, meaning that there will be no cash flow fluctuations.
  3. Risk Mitigation - There are none of the depreciation risks associated with ownership.
  4. Peace Of Mind - Option to take a fully maintained contract to minimise one off costs relation to routine servicing and maintenance.
  5. Road Tax - Is included for the duration of the contract.
  6. Protection - Customer who are eligble for PCH are covered by the consumer credit act and is regulated by the Financial Conduct Authority.
  7. Simplicity - PCH is a relatively simple financial product to understand. We will provide a formal quotation that breaks down the product in detail if you make an enquiry.

Potential Downsides

  1. Change of Circumstances - Some finance providers do not provide the option to alter the agreement once it has been setup. For example if you change job during the lease contract and the new commute to work means that you go over your mileage allowance you may be liable for an excess mileage charge at the end of the agreement. If you are concerned about we can check the terms of the finance provider in question to see if they allow mid contract amendments.
  2. Potential Damage Recharge - When the vehicle is collected at the end of the agreement it will be assessed on behalf of the finance company against the BVRLA's fair, wear and tear policy. This policy aims to do what it says on the tin and identify any damage that is not deemed as fair for the age and mileage of the vehicle. Finance companies are bound by the BVRLA's (trade body) guidlines when assessing damage but issues such as damaged alloy wheels or a deep scratch on the paint work could result in a charge to return the vehicle to the expected standard.
  3. Early Termination - If you need to exit the agreement before the end of the contract there is likely to be an early termination charge that will be payable.


  1. Is personal contract hire subject to VAT?
    Yes, VAT is charged but un-claimable by the individual.
  2. What are the criteria for being able to get a vehicle on lease?
    We will introduce our customers to a finance provider. All finance providers have certain criteria that needs to be met in order to accept an individual for a PCH contract. Customers must be over 18 years of age, hold a valid UK driving licence, have 3 years' employment history and at least a reasonable credit rating.
  3. Can I lease a vehicle with only one rental in month one to keep the initial outlay to a minimum?
    Some finance companies will allow this but in most cases the provider will require the applicant to have a strong credit rating. Please ask our consultants if you are interested in this type of payment profile.
  4. Is Insurance included as part of the standard lease price?
    No, insurance is not included in the monthly rental. Please let us know if you would like to be introduced to an insurance provider.
  5. Can I part exchange my current car as part of the lease agreement?
    No not directly but we do work with a partner who can provide our customers with a part exchange price. This part exchange service would be tied in with the delivery of the new lease vehicle.
  6. Who supplies the vehicle that you offer on lease?
    We work with a premier network of franchised supplying dealer groups. These supplier are approved by the manufacturers and will take care of delivery when the time comes around.
  7. What is the initial outlay?
    Finance companies request an initial rental that is usually made up of between 3 and 9 times by the monthly rental and this is taken in month one of the contract. In some occassion the finance provider may consider one rental in month one subject to the strength of the individuals credit. This initial payment should not be seen as a deposit payment but it does allow customers with a low cash outlay to enter into this type of lease contract.
  8. What does 'payment profile' mean and what options do I have?
    The payment profile refers to the number or value of the initial rental and how many subsequent monthly rentals are contracted within the lease. For example you might see reference to 3+35 which is a 36 month lease with 3 rentals in month 1 following by 35 monthly rentals. This type of profile is known as a spread rental but there are other options depending on the finance company.

    Spread rental - This is the "standard" payment profile in today's market and the most commonly requested. All rentals on our website will be based on a spread rental basis. Should a customer take a 36 month contract, they will pay an initial rental in advance followed by 35 subsequent monthly payments and the contract ends on month 36. If the initial rental is higher it will reduce the value of subsequent rentals.

    Terminal pause - An example of a terminal pause profile is 3+33 for a 36 month contract. Essentially the last two months of the contract will not have a monthly rental. The customer pays the total balance across 34 months.

    Flexible initial rental - This is often used in the event that a customer has sold a previously owned vehicle and has a larger amount free to put down into the lease. In this case the customer might have a round figure to put down as the initial rental e.g. £5,000. The profile would be £5000+35 across a 36 month contract.

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