Personal Contract Hire

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Simply explained

This short video provides a simple explanation of Personal Contract Hire and how it works.

What is it?

The choice favoured by most people who would prefer to use a vehicle, rather than own one. You simply choose a vehicle for an agreed period up to 48 months in exchange for a fixed monthly rental which includes Road Fund Licence. There are no depreciation or vehicle disposal worries since you just return the vehicle at the end of the contract. Fixed price servicing and maintenance options are usually available with most contracts for an additional cost. Personal Contract Hire is the ultimate in hassle-free motoring.

How does it work?

  • A Personal Contract Hire agreement can be structured to meet your needs based on the vehicle, estimated annual mileage, the agreement duration and any additional services you require
  • You may pay an initial rental that can be tailored to suit your requirements. The greater the initial rental, the lower your regular rentals will be
  • At the end of the contract you simply return the vehicle


  • You pay a guaranteed fixed monthly rental for the duration of the contract – subject to tax and Road Fund Licence charges
  • The contract is flexible, to meet the rental period and mileage that suits you
  • Your monthly rental can also include servicing, maintenance and repair, for an additional cost

Other things you should know:

  • Your contract will be subject to a minimum period of rental
  • You will not own the vehicle and there is no option to purchase at the end of the contract
  • If when you return the vehicle it has covered more miles than agreed you will be required to pay a charge for excess mileage. In addition if you have not kept the vehicle in reasonable condition for its age and mileage you may be charged a refurbishment cost in line with BVRLA standards
  • You can exit the agreement before the end of the agreed period, subject to paying 50% of the remaining rentals
  • This type of finance is not available to corporate entities, e.g. limited companies, PLCs or limited partnerships
  • If you have not opted for the servicing & maintenance inclusive option, then you must ensure the vehicle is serviced in line with Manufacturer requirements and at a Franchised dealer of the same brand. A refurbishment penalty may be applied if the vehicle is not maintained in line with these requirements.

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