Personal Contract Hire

What is Personal Contract Hire?

Personal contract hire is essentially the same as regular contract hire, but it applies exclusively to private individuals. With a personal contract hire agreement you take control of a car for a contractual period - usually referred to as the 'lease period'. Though the car is in your possession, it is not actually yours to own. Instead, you make fixed monthly payments to a leasing company for the duration of the contract - and when the contract expires you simply return the car to the leasing company or take out a new personal contract hire lease. As a result you never have to worry about resale values of the car - because you can simply return it and walk away. The monthly payments for a personal contract hire agreement will generally be lower than those of a personal loan. With a personal contract hire deal, you could afford a car that would otherwise be too expensive. As luxury cars tend to depreciate at the slowest rates, these often provide the best personal contract hire deals.