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What is the difference between PCH and PCP?


Personal leasing is essentially renting a car on a long-term basis. You pay a fixed monthly fee to use the car for an agreed period of time and an agreed number of miles. There are two main types of financing your motoring, PCH and PCP. 

PCH - Personal Contract Hire 

Personal contract hire is based on a fixed term contract where a customer agrees to pay an agreed amount of money per month to use the vehicle for an agreed period. It represents fixed cost motoring and you only pay for the use of the vehicle, handing it back at the end of the contract. 

PCP - Personal Contract Purchase 

Personal contract purchase is very similar to PCH but you have the option of buying the car at the end of the contract. You may also be liable for servicing and repair during the contract although this can be included in some contracts. 

Which Is the Best Option? 

There is no ‘best’ option as they both have their advantages and disadvantages and it all really depends upon your personal circumstances. One interesting statistic though is that four out of five people who opt for a more expensive personal contract purchase plan planning buy the vehicle at the end of the contract don’t end up doing so. If in doubt, you should always take advice. There are lots of variables involved so it is worth weighing up the pros and cons of each and how it fits in with your finances. We would be happy to provide any advice or answer any questions for you. Simply call us on 0330 900 2600 or email

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1st of March 2017

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