What is PCH?
PCH (Personal Contract Hire) is car leasing for individuals.
You pay a small upfront amount to a dealer or lender that delivers your new car (with a full manufacturer warranty) to your door and you keep it for a contract period of 2 to 4 years.
You then pay a fixed monthly payment each month and at the end of the period the car is collected and can be replaced with another new car.
PCH is popular because the monthly payment is often up to 40% cheaper than Hire Purchase or a Loan and you don’t need to worry about part exchange when you have finished with the car.
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35 Months x
£271/mth
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£813 |
£10,298 |
Not Applicable |
Select This Deal |
- There is no APR associated with PCH
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The monthly price specified above includes :
- delivery of the vehicle from a main dealer and collection at the end of the period;
- road fund licence, full manufacturer warranty and breakdown cover; and,
- All routine servicing, maintenance and repair are available from your local franchised dealership
- The Deposit/Initial Payment is paid prior to delivery and in some cases a fee to secure the vehicle will be charged.
- Your monthly rental payment commences one month after delivery, and is paid by direct debit.
- Excess mileage fees will apply if you exceed the agreed mileage
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Representative Example*
PCP
What is PCP?
PCP (Personal Contract Purchase) is the most popular way that UK car buyers finance their new car.
It accounts for 60% of all car finance from dealers.
It is similar to PCH but you have the option to buy the car at the end of the finance period.
You pay a small upfront amount to a dealer or lender that delivers your new car (with a full manufacturer warranty) to you for a contract period of 2 to 5 years.
You then pay a fixed monthly payment across the period at the end of which you have the option to pay a balloon payment to take full ownership of the car.
Like PCH, monthly payments for PCP are often much cheaper than Hire Purchase or a Loan and you don’t need to worry about part exchange with the flexibility of taking ownership if you want it.
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35 Months x
£304/mth
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£911 |
£11,534 |
Get quote |
Select This Deal |
8.95% APR Representative
- Total Payment (incl. optional final payment) = Get Quote
- Option to purchase fee £10
- There may be a credit arrangement and/or a completion fee to secure the finance. These are already reflected in the total payment shown above.
- Excess mileage charges apply if you exceed the agreed mileage and choose not to pay the optional balloon payment
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Representative Example*
Hire Purchase
What is HP?
If you use hire purchase to finance the purchase of your car, you are committing to buying the car outright via a secured loan that is paid back monthly across the period (usually between 3 – 5 years).
Monthly payments are therefore much higher than when using PCH or PCP.
However, you will not own the car until you make the final payment at the end of the term because the lender retains ownership (and can repossess it if you default on payments).
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35 Months x
£586/mth
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£1,202 |
£21,728 |
Not Applicable |
Select This Deal |
8.9% APR Representative
- Total amount of credit - £21,728
- Unlimited mileage
- Option to purchase fee £10
- There may be a credit arrangement and/or a completion fee to secure the finance. These are already reflected in the total payment shown above.
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Representative Example*
Bank Loan
What is Loan?
This is an unsecured loan (often called a personal loan).
An unsecured loan is when the loan attaches to you (not the car) and you own the car from the date of purchase.
You simply pay a monthly amount across the agreed period.
Lenders often have an upper limit of around £20,000 for a loan (for applicants with a very good credit history).
If you default on the loan the lender will pursue you and then other assets directly.
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35 Months x
£608/mth
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Not Applicable |
£21,888 |
Not Applicable |
Select This Deal |
9.9% APR Representative
- Loan amount - £18,855
- Credit arrangement fee: This may vary. Please ask on enquiry.
- Unlimited mileage.
- This is an unsecured loan taken by an individual or a company. Min/max period 12 – 60 months
- Maximum borrowings not to exceed £25,000 and amount lent will depend on credit status
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