What is personal car leasing?

Personal car leasing, otherwise known as personal contract hire or PCH, is a low-cost way to drive the car you want without the worry of ownership, depreciation or resale values. You make fixed monthly payments; then at the end of your agreement, you simply hand the car back and walk away.

You can drive a better car for less through personal car leasing.

1 Personal Contract Hire (PCH)

Personal car leasing, otherwise known as personal contract hire or PCH, is a way to spread the cost of your vehicle over a longer period. Instead of having to pay for the entire car or van upfront, you make fixed monthly payments over a pre-agreed term, usually between 12 and 48 months. Then, when your agreement ends, you simply return the vehicle to your finance provider and walk away. You’re then free to start a new contract if you wish. With a personal contract hire agreement, you never own the vehicle. Instead, your monthly payments cover its depreciation during your tenure. That means your monthly payments are usually significantly lower than some other types of finance, such as hire purchase. A personal contract hire agreement’s payments are calculated by using several criteria.

The value of your vehicle at the start of the agreement
How much deposit you wish to make
Your expected annual mileage
How long the agreement is going to last
The interest applied by your finance supplier

You can choose how much deposit you want to make - if any - as well as how many miles a year you need. You can also personalise how long you want the agreement to last to ensure it suits your needs and circumstances. When you hand the vehicle back at the end of your lease, as long as you’ve kept to the agreed mileage and there’s no damage to the car or van outside of fair wear and tear, you’ll face no extra charges. A personal contract hire agreement is perfect if you never want to own the vehicle. And because the contract is shorter than some other types of finance, it also means you get to change your car or van more frequently. With a lease, you can also add a maintenance package to give you complete peace of mind, and road tax and breakdown cover are usually included.

Benefits of PCH

Your monthly payments are usually cheaper than other types of finance meaning you can drive a more expensive car
You don’t have to worry about depreciation and resale values
There’s nothing to pay at the end if you haven’t exceeded your agreed mileage and there’s no damage to the car outside of fair wear and tear
You can add maintenance packages to your agreement, removing any worry of servicing, MOTs and tyre life
No deposit options are available on all Hippo personal leasing agreements

What should you consider?

You’ll never own the car outright
If you exceed your contracted mileage or your vehicle is damaged beyond fair wear and tear, you’ll face additional charges

Use our website to search thousands of new and used vehicles to find the right car for you. Even if you’ve got bad credit or can’t make a deposit, we’ve got a wide range of offers to suit every circumstance, and we’ll deliver your new vehicle directly to your door.

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