When it comes to finding your perfect car, you should first consider whether Personal Contract Hire is right for you or if Personal Contract Purchase suits your needs. This guide identifies the pros and cons of PCH and PCP.
Personal Contract Hire (PCH) is a rental agreement where you lease a car or van for an agreed amount of time which is usually between 2 and 5 years. You pay an upfront cost that suits you and then pay a set monthly payment until the end of your contract term where you simply hand back the car.
Personal Contract Purchase (PCP) is a purchase agreement where you lease a car for a certain amount of time- similar to PCH. You pay an upfront value and a monthly amount that covers the depreciation value of the car. At the end of the agreement, there are three options available to you, you can pay a balloon payment to purchase the car outright, use any remaining excess value in the car as a part exchange for a new agreement or just hand the car back and walk away.
If you have any questions about whether PCH or PCP is best for you, you can get in touch with our team on 0345 350 3776 or email firstname.lastname@example.org and we can help you however we can.