What is personal car leasing?
Personal car leasing is an agreement you make for a set period, usually 12-60 months, where you pay fixed monthly payments in return for a car. Personal car leasing deals typically require a deposit, although there are now many new and used vehicle deals available that don’t
There are four main types of personal lease; personal contract purchase (PCP), personal contract hire (PCH), hire purchase (HP) and lease purchase (LP).
To provide an insight into personal car lease types, we have compiled information on the different finance and lease options available and their benefits.
1 Personal Contract Purchase (PCP)
- Return the car: There will be no extra charges if the vehicle is returned within the agreed mileage and wear and tear guidelines
- Buy the car: You pay a final payment - a balloon payment (future value figure) - then the car is legally yours
- Part exchange your car for a new one