What is personal contract hire (PCH)?

Personal contract hire known as PCH or personal leasing is similar to renting, as you have access to a brand new vehicle, for an agreed length of time, usually between 2 - 5 years, for an agreed set monthly payment. Personal contract hire is becoming an increasingly popular and affordable alternative to purchasing a brand new vehicle without the common risks associated with vehicle ownership, such as repairs and depreciation.

You have full choice to choose the exact make, model, and specification (colour, trim, wheels, any vehicle optional extras) of the new car you choose to lease. You set the terms of the agreed annual mileage, length of the contract, and how much you would like to pay upfront, known as the "initial payment". The larger the initial payment amount, the lower your regular monthly repayments will be. Typically, you can choose to pay 1, 3, 6, 9, or 12 monthly payments upfront as your initial payment. 

During your lease, you will make a series of monthly payments for the duration of your contract (2-5yrs), in addition to the initial payment. You are effectively paying for the use of the vehicle throughout your contract. At the end of the contract, you simply return the vehicle to the finance company. Providing you have looked after the vehicle and returned the vehicle in a good condition, in line with BVRLA fair wear and tear standards for damage, have ensured the vehicle has been serviced in accordance with manufacturers maintenance recommendations, and not exceeded your agreed annual mileage throughout your contract, you have no further obligations. This leaves you free to lease a brand new vehicle. 

Who can apply for a personal car lease?

The great news is that almost everyone can apply for a brand new vehicle using personal contract hire. Providing you meet the criteria below you're likely to be eligible for personal finance :

• Over 18yrs of age
• Hold a valid full UK drivers license
• Able to provide a minimum of 3yrs employment and address history 
• Not been declared bankrupt, nor have CCJS or IVAs against your name
• Receive a regular, secure income ie full-time employment
• Be successful in your application for credit with the chosen finance company*

* Part of the application process requires that you undergo a personal credit check to assess your credit strength and risk. This is undertaken by the finance provider, not Trio leasing. This is a quick and simple process, however, it is much easier to lease a car if you have a strong credit rating. If you have a poor credit rating you may still be able to lease using a funder who specialises in adverse credit scores. 

Get in touch today to apply for a new vehicle on personal contract hire customerservice@trioleasing.co.uk or 01283 907100