DFC Belfast 25 Year Anniversary

028 9073 4222 facebook twitter

DFC Belfast 25 Year Anniversary

028 9073 4222 facebook twitter

What is Personal Contract Hire and how does it work?

What is Personal Contract Hire?

Personal Contract Hire, PCH or leasing is like renting a car for a longer period of time (3-4 years) and only with brand new vehicles.

What to do at the start of your contact?

At the start of your contract you have:


  1. Initial and monthly payments
  2. Contract term
  3. Annual mileage


At the start of your contract, you have to pay an initial deposit, which is usually set at a multiple of the monthly rental such as x3, x6 or x9. So, for example, if you’re monthly payment is £200 and your initial deposit was x6 you’d pay £1,200 for your initial deposit.

A contract term needs to be agreed which is usually 3 to 4 years.

Annual mileage will also need to be agreed. Don’t worry though this can be adjusted if circumstances change during the duration of your contract. You also have to bear in mind if you exceed your mileage for the duration of your contact there will be excess mileage to pay.

What to do in the middle of your contract?

Drive the vehicle! With a maintenance package, your vehicle will be serviced, however, if you don’t make sure you book your vehicle in for a service based on the manufacturer’s guidelines.

What to do at the end of your contract?

At the end of your contract simply hand your vehicle back. The next step is to lease your next vehicle! That’s it!

Do remember that if the vehicle is damaged beyond “fair wear and tear” (We understand cars pick up wear and tear. To learn more about the British Vehicle Rental and Leasing Association see their Fair Wear and Tide Guide here) or you exceed your limit you will have to pay the penalties incurred. Treat a leased vehicle like your own and you should have no problems when you return yours.

How much does it cost to lease?

There are several factors that help determine the cost for you to lease.  These factors are:


  • Road price of the vehicle – The higher the value, the more expensive it costs to lease.
  • Length of contract – Having a leased car for a shorter period will depreciate less and therefore will cost you less to lease.
  • Initial deposit – Like many payments, you make for property and holidays the more you pay upfront, the smaller the monthly payments you have. The same applies to leasing.
  • Usage/Mileage – Doing fewer miles will reduce the depreciation on your vehicle and cost you less to lease.
  • Resale/residual value – The resale or residual value is what we expect the car to be worth at the end of the contract. Therefore, vehicles that depreciate less are cheaper to lease. Look out for our blog soon on the cars that depreciate the least!


Interested in leasing?

We would be happy to help! Get a FREE quote today. Click here to request your FREE no-obligation leasing quote.