What is Personal Contract Hire?

Our range of flexible finance options includes Personal Contract Hire (PCH), as well as PCP and HP. We've designed our finance packages with you in mind, and our teams are on hand to help you understand all the opportunities available before making a commitment. Personal Contract Hire offers a distinct alternative to the other types of car finance available at Blade.

How does Personal Contract Hire work?

PCH is one of the most straightforward finance options available. At the end of your contract, you won't need to worry about a resale value or your car, or paying an additional sum to gain ownership of your car – you simply walk away or commit to another finance agreement, and a new car. This method of car financing is similar to regular contract hire, but applies exclusively to our private customers.

Once you've found the vehicle you want, a lease period is agreed and the residual value of the vehicle is determined. To calculate this value, a mileage limit will be set. The monthly amount you pay will be calculated by deducting the residual value from the retail price –you pay the difference plus an APR. At the end of your contract, you can either take out a new agreement or simply return the vehicle to us. This option is ideal for those who require a vehicle for a defined period of time but don't want or need to commit to ownership at the end.

Alternatives to PCH

With the similarly structured Hire Purchase (HP), you would also pay a set monthly amount but also have the option to own your vehicle once the contract ends by paying a small fee. Another alternative is Personal Contract Purchase (PCP) which also involves a set monthly payment based upon the vehicle's future depreciated value. When the term finishes, the vehicle is either returned or a lump sum is paid to gain outright ownership. This method of car financing offer flexibility and can lower your monthly payments.

You can explore the other options available to you on our Personal Contract Purchase and Hire Purchase pages. For further information about PCH, please contact us directly or visit your nearest Blade Group dealership to speak to the team in person.