Leasing Your Next Car or Personal Contract Hire (PCH)
Lease Hire, also known as Personal Contract Hire (PCH), is a straightforward way to drive a new car without ever owning it. You pay an initial payment, followed by fixed monthly payments over a set term, typically 2-4 years. At the end of the agreement, you simply return the car to the lease company. This option is ideal for those who want predictable monthly costs and enjoy regularly upgrading to the latest models without the hassle of selling a car.
Lease Hire deals are available from a wide range of lease brokers and dealerships. It's always advisable to compare offers from various providers to secure the most competitive rates. Some dealerships might offer exclusive lease deals, but be sure to balance these against the overall monthly cost and any additional fees. Comparison sites can be a good resource to explore different lease hire companies and their offerings on the vehicle you are interested in.
Advantages of Lease Hire
Lease Hire is particularly beneficial for individuals who prefer fixed monthly budgeting and want to avoid the depreciation risk associated with car ownership. Your monthly payments are often lower than with other finance methods, as you are only paying for the depreciation of the vehicle over the lease term, plus interest and fees. It offers hassle-free motoring with no concerns about selling the car at the end of the term, and you can regularly switch to a brand new vehicle. Maintenance packages can also often be included for an additional fixed monthly cost.
Disadvantages of Lease Hire
The main disadvantage of Lease Hire is that you never own the car, meaning you won't build up any equity. There are strict mileage limits, and exceeding these will result in significant excess mileage charges. You are also responsible for keeping the car in good condition, as any damage beyond fair wear and tear will incur charges when you return the vehicle. Early termination of a lease agreement can be very expensive, as you may be liable for a substantial portion of the remaining payments.