Personal Contract Hire or PCH is one of the most popular options available when it comes to leasing a vehicle for personal use. If you have never entered into a leasing agreement before, you may not be familiar with the term. If this is the case, then you may not know if it would be the right choice for you or not. Many new clients get confused at first because the lesser may ask the following question. Do you want a lease or a Personal Contract Hire?
You may be wondering what the difference is between the two but, feel a little embarrassed having to ask that question when you’re on the verge of entering into a contract with a leasing company. Still, it would be difficult to know how to answer if you don’t ask. It can also be very frustrating unless you understand what you’re actually being asked.
Fortunately, it’s not as complicated as it may sound because some of the leasing terminology can get a little confusing. Once you know what the terms mean, it will be easy to answer any question you’re asked. The main reason this question gets confusing is because in essence, the PCH is simply a type of leasing option. Therefore, if you’re asked, do you want to choose a lease or a Personal Contract Hire, you’ll basically being asked which type of leasing contract would you like to take out.
Individuals have a choice between the PCH and the PCP, which is Personal Contract Purchase. The two are very similar with the main difference being that, you have the option of buying the vehicle at the end of your leasing agreement when you choose the PCP. You’ll have low monthly payments and fixed monthly rates along with several other packages to choose from with both options. Take some time to review both the PCH and the PCP before heading out to lease your vehicle.
When making your decision between the two, it would be easier to choose if you consider what your long term goals are. For example, what do you plan to do at the end of your leasing term? Will you lease another vehicle? Will you consider buying a vehicle? Do you think you might would want to purchase the car that you’re leasing when the contract ends? The answer to these questions will help you decide between PCP and PCH.
A few other things that you may want to consider is how long you plan to lease the vehicle, what extra services will you need and exactly what your budget will allow for leasing a car. The more prepared you are when you walk into the leasing company the better off you’ll be. You’ll already know if the Personal Contract Hire option is right for you and you’ll be ready to make a deal.
Visit Fulton Leasing for more information on Personal Contract Hire and the other options that are available.
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