Embrace Leasing

Key features of personal contract hire

The key features of personal contract hire

  • PCH is the most common form of private car leasing
  • Fixed monthly rentals cover the rental of the vehicle, plus any maintenance options if chosen
  • The monthly rentals are calculated by taking the following into consideration:
  • The cost of the vehicle
  • The contract period
  • Anticipated residual value of the vehicle (how much the vehicle is likely to be worth at the end of the contract)
  • Mileage allowance (as chosen by you before the start of your contract)
  • Any additional options, such as a maintenance contract
  • You never technically own the vehicle – it remains the property of the finance company.
  • However, this means you do not need to worry about the vehicle’s depreciating value

The key benefits of PCH

  • Low initial rental
  • Fixed rentals for the whole package, making budget planning easier
  • Flexible terms to meet your finance requirements and driving habits – with variable contract duration and mileage terms
  • Maintenance of vehicles can be included in the monthly fees, spreading the cost
  • Allows you to use a vehicle that might otherwise be unreachable in terms of its on-the-road (OTR) cost
  • When returning the vehicle at the end of your agreement, you do not need to worry about it depreciation or disposal