PCH is a great plan for those who want to stay in a new car for the lowest possible monthly payment. The vehicles are made available to the contract hire companies at a discounted price allowing savings to be past on to you in the form of lower monthly rentals. You also need not worry about how much the vehicle has depreciated by, nor negotiating its value at the end of the contract as we simply take the car back, charging only for excess mileage or damage. Annual road tax is included in the contract, routine maintenance costs can also be included to form a comprehensive package.
Personal Contract Hire (PCH) is preferred by individuals that would like to lease their vehicle rather than owning one. You pay an initial rental upfront, usually the equivalent of 3,6 or 9 monthly rentals, and then the regular monthly rentals for your chosen duration of up to 4 years. When the agreement comes to an end you simply return the car with no further cost, providing it hasn't exceeded the agreed mileage and the condition is reflective of its age and mileage. There is no option to own the car at the end of the agreement.