Personal Contract Hire

Personal Contract Hire – Key Points

Before you enter into your finance agreement please take a moment to make sure you understand some of its key features.

What are my obligations under this type of agreement?

You are committing to making the payments detailed on your quotation and vehicle order form.

You must insure the vehicle at your expense with fully comprehensive insurance.

You must maintain the vehicle according to the manufacturers recommendations.

What if I want to end the agreement early?

You can request an ‘early termination settlement quotation’ at any point. This figure varies with different finance companies, but is generally at least 50% of outstanding payments for the duration of the contract.

What happens at the end of this agreement?

You have the following options:

  1. Arrange for the car to be collected.
  2. Ask for a quotation to extend the contract.
  3. Start again with another new vehicle.

Assuming your vehicle is in an acceptable condition with a full service history, spare keys, road legal tyres and within your contracted mileage, no further costs will be incurred.

If there is damage deemed to be outside what is considered Fair Wear & Tear, you may be charged as appropriate by the relevant finance company.

If you have exceeded your contracted mileage you will be charged an excess mileage charge per mile as detailed on your order form and finance agreement.


  1. Low initial payment possible.
  2. Fixed monthly payments.
  3. No depreciation concerns.
  4. No disposal worries.
  5. Maintenance and tyres can be included at an additional cost.
  6. Road Fund Licence is generally included for the term of the term of the agreement.
  7. At the end of the contract you simply hand the vehicle back.


  1. Early Termination can be expensive.
  2. If you return the vehicle and have exceeded the contracted mileage, an excess mileage charge will be applied.
  3. If you return the vehicle with damage deemed outside of the Fair Wear & Tear policy, you will be charged.
  4. You will never own the vehicle.