What is Personal Contract Hire?
Personal Contract Hire (PCH) is a car leasing option that allows individuals to hire a vehicle for a fixed term, usually between 2 to 4 years, by making monthly payments. With PCH, the customer essentially rents the car, with payments covering its depreciation, maintenance, and sometimes insurance, depending on the agreement. At the end of the contract, the car is simply returned to the leasing company, and there's no option to buy it. The main benefits of PCH include lower monthly payments compared to traditional car loans, the flexibility to drive a new car every few years, and the convenience of having most maintenance and repair costs covered. This makes it a popular choice for those who want a hassle-free driving experience without the long-term commitment of ownership.