Knowledge Bank

What Is Personal Car Leasing?

Personal car leasing is an increasingly popular option for motorists in the UK, with over five million leased vehicles on British roads.

A personal car lease or Personal Contract Hire (PCH) is an agreement between you and a car leasing company. You agree to make monthly payments for a set period — typically two to four years — in exchange for using a vehicle.

At the end of the lease term, you return the vehicle to the leasing company and choose a new car to lease. Many people choose to lease a vehicle because it offers lower monthly payments than financing a purchase and allows them to drive a new car with little upfront cost.

Who’s Eligible for Personal Car Leasing? 

To be eligible for a personal contract hire, you must:

  • Have a full UK driving licence
  • Pass a credit check
  • Have a regular income.

If you meet these requirements, you could be driving away in your new car in no time.

At Tilsun Leasing, you must be 18 years old to sign a personal car leasing contract, but other leasing companies have different age requirements. 

Benefits of a Short-Term Personal Car Lease

A personal contract hire, or PCH, is a great way to lease a new car without having to worry about the financial burden of owning it outright.

With a PCH, you simply make agreed monthly payments for an agreed period of time and then return the car at the end of the contract. But alongside that, there are several other advantages, including: 

  • Lower initial payment
  • Fixed monthly costs for the duration of your lease contract
  • Adjustable annual mileage
  • Variable contract length
  • No depreciation concerns
  • Manufacturer’s warranty
  • Affordable monthly maintenance packages
  • The ability to drive a car that may otherwise be unaffordable.

How Personal Car Leasing Works

A personal contract hire, or PCH, is a great way to lease a car without worrying about depreciation or selling it when you're done. 

Here's how it works: 

You agree to lease the car for a set period, usually two to four years. During that time, you make monthly payments to the leasing company. 

The payments are based on several factors, including: 

  • The car's value at the start of the lease
  • The estimated car value at the end of the lease 
  • Annual mileage
  • Lease length
  • Any administrative costs.

At the end of the lease period, you simply hand the car back to the leasing company and walk away — no strings attached.

However, there are a few things to be aware of before you sign on the dotted line. For example, most leases require you to maintain the car in good condition and keep it below a specific mileage limit. If you exceed the mileage limit or damage the vehicle, you may be required to pay penalties when you return it at the end of the lease.

A personal car lease can be a great option if you only want the car for a certain time or if you want to avoid the hassle of selling it when you're done. And because you're only paying for the car's value during the lease period, it can work out cheaper than buying outright in the long run. So if you're considering leasing a vehicle, explore our car leasing deals today. 

Tilsun Leasing has a huge 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 questions about car leasing, contact the Tilsun Leasing team today by calling 03330 040 888 or emailing [email protected].

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Lex Autolease
Leasing Broker Federation

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