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The two main options for private car leasing are:
- PCP (personal contract purchase)
- PCH (personal contract hire).
Benefits of private car leasing contracts
PCP and PCH are suitable for private individuals who wish to have a hassle free and cost efficient way to lease or contract a vehicle with similar options to contract hire such as servicing, maintenance and repair.
Usually private car leasing schemes such as these also include the road fund licence for the full contract period.
How PCP contracts work
PCP offers a realistic GFV (Guaranteed Future Value) price which is set at the beginning of the contract. This will be the amount you pay in order to own the vehicle at the end of the contract (lease).
If you do not wish to purchase the vehicle you can advise the lease provider approximately 3 months before the end of the agreement and arrange to have the car collected at the contract end date.
How PCH contracts work
PCH contracts are similar to PCP but the car will always be returned at the end of the agreement.
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