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Personal Contract Hire - or PCH - is one of the most commonly used forms of car finance. It’s a great way of getting behind the wheel of a new vehicle and can bring lower monthly payments than other financing options. Plus, it’s one of a number of finance options offered at HPL Motors. 

Here, we’re going to take a look at what PCH brings and why it might be an option for you. 

Do I need to pay a deposit with PCH?

It depends. Some suppliers might not need a deposit, but this will result in slightly higher monthly payments. 

If you want to keep those monthly outgoings down, then placing a deposit can help to take the edge off those monthly payments. 

Do I get to keep the car at the end?

You don’t. Whereas with Hire Purchase you’re effectively paying off the car and will own it at the end, or with PCP where you could have the option to buy a vehicle outright at the end of your term, there’s no option to do so with PCH. 

So what’s the benefit?

PCH is a great option for people who like to change their cars frequently. It takes away the issue of having to sell your car each time you want to upgrade - all you need to do is give your car back and start the process again. 

It also means you’re not having to cover the car’s depreciation. 

Will there be a mileage limit?

Yes. You’ll need to set a mileage limit at the start of your contract and this will have an effect on your monthly payments. So think carefully about how many miles you expect to do and, if you have any questions, you can always ask one of HPL’s representatives. If you go over your mileage limit, you may incur extra costs. 

What happens when I’ve finished my contract?

When you come to the end of your contract, things are simple. All you need to do is hand back the keys and you’re done. At that point, you can start having a look at a new vehicle and with it a new finance agreement.