Personal Contract Hire (PCH) is the long-term lease of a brand-new vehicle. PCH is different to Personal Contract Purchase (PCP) as a PCH vehicle cannot be purchased at the end of a lease, unlike PCP vehicles. During the lease agreement, fixed monthly payments of a PCH vehicle will be discussed, as well as an agreed mileage and time period for the lease.
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|Monthly payments required||Yes||Yes||Yes|
|Annual mileage limit||Yes||Yes||No|
|Early settlement option||Yes||Yes||Yes|
|Option to own the car outright||No||Yes||Yes|
No, it doesn’t include insurance.
No, this type of lease can only be used on new cars.
No, you don’t get your deposit back as with any lease.
You will pay an added mileage charge per mile agreed at the initial purchase
The car is handed back and is checked for damage and general wear and tear
Yes, although there is normally a fee which is typically half the cost of the owed amount. For example, if you owe £3000 pounds, you would probably pay £1500.