Knowledge Bank

What Is a Personal Contract Hire?

A Personal Contract Hire (PCH) is a type of car finance that allows you to lease a vehicle for an agreed period of time and mileage. You will make monthly payments to the leasing company that owns the car. 

If you’re wondering whether a personal contract hire is the right choice for you, we’ve put together this quick guide. It gives a helpful overview of how personal contract hire agreements work and their benefits. 

How a Personal Contract Hire Works

A personal contract hire, or PCH, is a type of vehicle finance that lets you lease a car for between two and four years. At the end of the term, you simply hand the vehicle back to the leasing company with no further payments. 

A PCH is ideal if you want to drive a new car every few years but don't want the hassle and expense of owning and maintaining one. 

Here's how it works:

You choose the car you want and agree on a leasing period, fixed monthly payment and mileage with the leasing company. The leasing company then leases you the vehicle, and you pay them a monthly lease fee for its use. The fee usually includes things like road tax and a manufacturer’s warranty. 

Sometimes it will also include breakdown cover and maintenance. Tilsun Leasing offers maintenance packages for an additional monthly fee to cover you if anything goes wrong. At the end of the term, you hand back the keys and walk away — there's no final balloon payment or anything else to worry about.

A personal contract hire could be the perfect solution if you're considering getting a new car but don't want to commit to ownership.

Benefits of a Personal Contract Hire

One of the main benefits of choosing a PCH deal is that it can help you budget more effectively as your monthly payments are fixed. This can be useful if you are worried about your monthly expenses increasing. 

Another benefit is you won’t have to worry about selling the car when you no longer want it, as you would if you owned it outright. You can simply hand it back to the leasing company at the end of the term and find your next lease car.

Other benefits include: 

  • Low initial payment
  • Personalise your lease to your needs
  • A wider range of vehicles.

How to Find a Personal Contract Hire

At Tilsun Leasing, we make it as easy as possible for you to find a personal contract hire that suits your needs. Start your search by looking through our vast selection of personal car leasing deals. If you’re looking for something specific, you can filter your search by: 

  • Manufacturer
  • Fuel Type
  • Transmission
  • Style

You can also filter results by lease length, mileage and your budget range. Once you’ve found the car you’d like to lease, you can tailor the lease to your needs and add vehicle maintenance. After that, we’ll send you a personalised quote and start your leasing journey.

Tilsun Leasing has a vast selection of personal car leasing deals suitable for all types of drivers, whether you’re looking for your first or dream car. If you have any questions about car leasing, contact the Tilsun Leasing team today by calling 03330 040 888 or emailing [email protected]


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