As the name suggests Personal Car Leasing (also known as Personal Contract Hire) is simply contract hire but for individuals. Personal Car Leasing is based on a fixed term contract where customers pay an agreed monthly charge for the use of a vehicle for a previously agreed period.
Contracts are usually taken over two, three or four years, providing a high level of flexibility.
If you are looking to have predictable motoring costs adding maintenance to your monthly payment is easy. Maintenance is there to put your mind at rest should any challenges arise with your vehicle and generally covers servicing, routine maintenance, tyres, exhausts and batteries.
There are plenty of advantages to personal contract hire, but like most financial agreements there are some disadvantages to look out for:
Vehicle must be returned in a well maintained condition
Early termination can be expensive
You must have fully comprehensive vehicle insurance
You will never own the vehicle