NEW CARS USED CARS SERVICING AND PARTS Sell vehicle My account Contact Us Menu Personal Contract Hire Personal contract hire is a form of long term rental which is perfect for those who know they will be looking to move on to another car once the agreement period is over. What is Personal Contract Hire (PCH)? Working in a similar way to Personal Contract Purchase (PCP), the main difference is that ownership of the vehicle would not be assumed at the end of the agreement period and instead the car would be handed back without any further obligation. However another vehicle could then be chosen under the same scheme (subject to credit checks). This enables maximum flexibility with your choice of vehicle and the benefit of driving a brand new car every few years. When the Agreement Starts The amount you want to borrow, less any advance payment is agreed. Your application for finance is then submitted to the relevant motor finance company and, when you pass their checks, the lender will pay for the car on your behalf. Your monthly payments are fixed during the period of the agreement. When the Agreement Ends You return the car to the dealership with no option to buy the car - hand back the keys with no further obligation. Advantages of Personal Contract Hire There are several advantages when considering a PCH plan. It's a low risk option as the car can be driven away without the worry of a warranty expiring or worry about the best way to re-sell it in future. Monthly payments could be more favourable than compared to Hire Purchase. It offers flexibility as the car can be easily changed at the end of the agreement period, with access to a wide range of vehicles which, under normal circumstances, could not be afforded. Things to remember It is best to be realistic about annual mileage as there will be a charge for each additional mile covered. There is no option to buy the car at the end of the period. Make an Enquiry For you, for life Help Terms & Conditions Cookie Policy Privacy Notice Terms of Business Modern Slavery Statement Motability Partner Specialist Automotive Finance About Us About Us Careers Gender Pay Contact Us Connect with us Our brands © Copyright Lookers plc 2021 Lookers is a trading name of Lookers Motor Group Limited which is authorised and regulated by the Financial Conduct Authority for credit broking and insurance distribution activities under reference number 309424. Introducing you to a number of lenders means we receive a commission. Lenders pay commission at different rates either as a fixed fee or as a fixed percentage of the amount you borrow. The commission that we receive does not affect the amount that you pay to the lender under the credit agreement. Credit subject to status. Your choice on cookies We use cookies to give you the best experience we can. Yes, I'm happyManage my cookies