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Personal Contract Hire:  What You Need to Know


This guide gives you the facts about Personal Contract Hire to help you make your decision.


What is Personal Contract Hire?


Personal Contract Hire or Personal Leasing is contract hire for individuals.

You pay a monthly fee to use the leased vehicle for a set time and within a mileage limit.

The lease contract is normally fixed for 24 to 60 months and you choose the length you need. The mileage limit is based on your annual mileage.


What are the Costs?


The cost of your lease deal depends on the vehicle you choose, the contract length and your annual mileage.

During the lease, you’re also responsible for the repair and maintenance costs of the vehicle.

To fix these costs, you can add the Full Maintenance option to your lease contract for an extra monthly fee. This includes all regular servicing and routine maintenance. As well as MOTs, tyres, brakes, exhausts and batteries etc.

If you drive more than your mileage limit, you’ll have to pay an excess mileage fee. This is a pence per mile charge and is agreed before you sign your lease agreement.

There may also be vehicle damage charges if the vehicle’s condition is outside the "Fair Wear and Tear Guide" when it’s returned. You’ll get a copy of these guidelines at the start of your lease.


Is Personal Contract Hire Right for You?


The Advantages:
  • The initial rental payment is flexible to help you afford the monthly fee.
  • The length of the lease and your mileage limit are set to what you need.
  • You don’t have to take a financial risk with buying and selling. Because you only pay for the use of the vehicle.
  • There are no future resale risks from the vehicle losing value.
  • Road tax (road fund licence or vehicle excise duty) is included in your contract.
  • Option to add maintenance, tyres and recovery costs to the contract.
  • Option to add replacement vehicle cover if the vehicle breaks down.

The Disadvantages:
  • Ending the lease early will cost you more because it’s designed to run for a fixed time.
  • You’re charged extra for each mile you drive over your mileage limit.
  • There’s no option to buy the vehicle so you’ll never own it.
  • You must look after the vehicle. Because you’re charged for any damage outside the "Fair Wear and Tear Guide".
  • Comprehensive vehicle insurance is essential.
  • You’re responsible for repair and maintenance costs of the vehicle.


Have More Questions about Personal Contract Hire?


Find out the answers to common questions on our website:  Personal Contract Hire FAQs.


Who is trueFleet®?


We’re here to help you find the right vehicle at the right price.

From your initial enquiry to the delivery of your car or van, we manage the whole process to save you the hassle.

We work with the leasing companies and dealers to find the best deals for you.

We’re authorised and regulated by the Financial Conduct Authority (FCA).

We’ve got over 30 years’ experience of finding the perfect cars and vans. As a result, you’ll enjoy special discounts and terms.


Have a question? Pick up the phone and we’ll talk you through it.