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Personal Car Leasing

Personal or individual consumers have various options open to them – namely personal contract hire, personal contract purchase and hire purchase. All of these are often referred to as “car leasing” both within the motor industry and by the general public. Below is a brief description of each type of personal contract, a more detailed description is available elsewhere on our website.

Personal Car Contract Hire

Personal contract hire (PCH) - as in business contract hire – is really hiring a car over a fixed period of time, for a fixed payment amount. If required, the servicing and maintenance can be included in the personal contract hire contract, further enabling the end user to budget for their monthly and annual motoring costs, leaving only the insurance and fuels as possible variable amounts. With a personal contract hire the end users do not have the worry of how rapidly the vehicle may depreciate as the disposal of the vehicle at the end of the personal contract hire will not be their responsibility. When the personal contract hire agreement ends, the hirer can simply hand the car back, leaving him or her open to start another personal contract hire agreement or simply “walk away”.

Personal Car Contract Purchase

Personal contract purchase (PCP) differs slightly from personal contract hire in that the personal contract purchase contract holder has the option of purchasing the vehicle at the end of the personal contract purchase period for a fixed amount – the guaranteed future value of the vehicle, which is also known as the “balloon payment”. This amount is constant throughout the life of the personal contract purchase contract as it is fixed when the personal contract purchase agreement commences. The end user has the option to keep the vehicle, to sell it on for profit if the balloon figure is favourable, to hand the vehicle back and start again with another personal contract purchase – or to “walk away”.

Personal Car Hire Purchase

The final option for the personal client is hire purchase – probably one of the best known forms of personal motor finance, or car leasing, for the individual client. A hire purchase agreement will give the end user the ability to project their personal car finance costs on a monthly and an annual basis, as the payments will not change during the life of the hire purchase agreement. Hire purchase agreements require an initial payment followed by the monthly payments (comprising a portion of the money borrowed, plus the interest) over an agreed period, and at the end of the hire purchase agreement the vehicle then becomes the property of the individual.

All of the above personal motor finance options – personal contract hire, personal contract purchase and hire purchase – involve an initial payment, followed by regular monthly payments over the life of the personal finance agreement. All the vehicles are sourced through carleasinguk.com’s national franchised dealer network, and will be delivered to your home or workplace – you do not have to travel to collect your new vehicle.

For all types of agreement, personal contract hire, personal contract purchase or hire purchase each personal finance client will benefit from their own dedicated account manager, and once the vehicle has been delivered our Customer Services team will be available throughout the life of the contract to answer any queries that may arise. By taking out a personal contract hire, personal contract purchase or hire purchase agreement with carleasinguk.com the end user is assured of personal attention from the initial contact stage right through to the end of the contract – and will be able to drive the vehicle of their choice at an affordable price.

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