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Personal Contract Hire (PCH) Car finance

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How does PCH work?

If you never want to own the car, and you know this from the beginning, then you might want to consider personal contract hire instead of the other finance options such as PCP . If you’re not planning to buy the car at the end of a PCP, then PCH could turn out to be the cheaper option for you.

How does PCH work?

When you take out a Personal Contract Hire agreement, you’re able to drive your car for an agreed period of time. This duration is known as the 'lease period'.

Latest PCH Offers

Explore the latest Personal Contract Hire offers available from popular brands

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How does Personal Contract Hire compare to buying a car?

Buying a car outright can involve a degree of uncertainty—particularly with used vehicles, where the full history isn’t always clear. Unexpected mechanical issues can arise, often leading to unplanned and potentially expensive repairs.

Ownership also brings the responsibility of selling the vehicle when you’re ready to move on. This can mean paying for advertising, arranging viewings, and negotiating with buyers. If you choose to part exchange, the offer you receive may be lower than expected. On top of that, all cars lose value over time, and depreciation can be significant.

With Personal Contract Hire, depreciation is calculated upfront and included in your fixed monthly payments. While market values may change, your costs remain predictable—so there are no surprises or additional charges related to depreciation at the end of your agreement.

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How does Personal Contract Purchase (PCP) differ from Personal Contract Hire (PCH)?

Personal Contract Purchase (PCP) is a flexible finance option that gives you the choice to buy the car at the end of your agreement. If you decide to keep the vehicle, you’ll need to make a final lump sum payment—often referred to as a balloon payment—which can be substantial.

While PCP agreements don’t always require a deposit, an initial payment is often needed. Many PCP deals also offer the flexibility to end the agreement early by settling the difference between the outstanding finance and the car’s current market value.

In contrast, Personal Contract Hire (PCH) is a straightforward leasing arrangement where you pay a fixed monthly amount to drive a car for an agreed period. There’s typically no option to purchase the vehicle at the end of the contract (depending on the provider and terms), making it a simple, hassle-free way to enjoy driving a new or nearly new car without the long-term commitment of ownership.

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Improving Your Credit Score with Car Finance

Consistently making your car finance payments, and even making early payments, can have a positive impact on your credit score over time. Early payments demonstrate your commitment to paying off your debt and can help boost your credit rating. Additionally, having different types of credit, such as a car finance agreement, on your credit report can diversify your credit mix and further improve your credit score

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Why Choose Swansway Motor Group Personal Contract Hire

Why choose Personal Contract Hire?

Personal Contract Hire (PCH) is a simple and cost-effective way to enjoy driving a new car, without the long-term commitments of ownership. Here’s what makes it such an attractive option:

  • Upgrade regularly – switch to a new model every few years and always enjoy the latest features
  • Predictable costs – your monthly payments are fixed, making budgeting straightforward
  • Better value driving – lower monthly payments can make higher-spec vehicles more accessible
  • More choice – drive cars that may be out of reach with traditional buying methods
  • Less to worry about – road tax and warranty are usually included, reducing ongoing costs
  • Flexible add-ons – maintenance packages can be built into your plan for added peace of mind
  • No resale hassle – simply return the car at the end of your agreement, with no concerns about depreciation or selling

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